S&P500: Forecast Dampened by Buffett Exit, Streaming Tariffs Hit Tech Stocks

Futures Edge Lower as Streaming Stocks Slide and Buffett Announces Exit

U.S. stock futures moved slightly lower Monday morning, cooling off after the S&P 500 capped a nine-day winning streak last week. Media stocks were under pressure following a surprise policy announcement from former President Donald Trump, while Berkshire Hathaway declined after Warren Buffett disclosed plans to step down as CEO.

Streaming stocks fall on tariff proposal

Netflix shares dropped 5% in early trading after Trump proposed a 100% tariff on movies produced outside the U.S., citing the need to revive domestic film production. Disney fell 3%, while Warner Bros.

Discovery, Paramount, and Amazon each declined between 1% and 2%. The post, made on Truth Social, lacked details but triggered a swift market reaction, with investors concerned about the cost implications for studios that rely on foreign locations to reduce expenses.

Buffett succession and weak earnings hit Berkshire

Berkshire Hathaway shares slipped more than 1% after the company reported a 14% drop in Q1 operating earnings. Insurance underwriting profit fell nearly 49%, dragging results despite strength in other segments. Separately, Warren Buffett announced he will step down as CEO at the end of the year. The board named Greg Abel as his successor effective January 2026, with Buffett remaining chairman. The leadership update comes after shares hit record highs on Friday.

Chipmakers gain on guidance, cost controls

ON Semiconductor rose after reporting adjusted earnings of $0.55 per share for Q1, above estimates. While the company posted a net loss of $486 million, revenue also beat forecasts, and ON raised its full-year outlook. Wolfspeed added 7%, building on Friday’s 24% gain, as traders responded positively to reaffirmed guidance and the upcoming departure of CFO Neill Reynolds.

Howard Hughes surges on Pershing Square investment

Howard Hughes Holdings jumped 8% in premarket action after Pershing Square said it would purchase 9 million new shares at $100 apiece, a 48% premium to Friday’s close. The move signals continued activist interest and boosts confidence in the real estate developer’s valuation.

Tyson slips after flat sales, weak profit

Tyson Foods fell 1.3% premarket after reporting flat year-over-year sales and a sharp drop in earnings. Adjusted EPS came in at $0.92, topping forecasts, but weakness in beef and pork volume and a $343 million legal contingency charge weighed on the results.

More Information in our Economic Calendar.