Stocks slide as even more companies pull their forecasts and Wall Street eyes the Fed

Catherine Baab

Tue, May 6, 2025, 5:48 AM 3 min read

U.S. stocks moved lower early Tuesday, extending a recent losing streak as traders eye rising volatility and brace for a wave of economic signals — due later this morning and later this week.

The S&P 500 slipped 0.8%, the Dow Jones Industrial Average dropped 0.6%, and the Nasdaq led declines with a 1% slide. The small-cap Russell 2000 futures was off 0.9%.

New trade data due at 8:30 a.m. ET is expected to show the U.S. deficit swelled to a record $137.6 billion in March, thanks in part to a rush of pre-emptive imports triggered by Trump’s trade threats. The report covers both goods and services and comes just as the Federal Reserve kicks off its two-day policy meeting.

While rates are expected to stay put, Fed Chair Jerome Powell’s remarks on Wednesday will be endlessly combed for any signals about future rate directions — and any hints as to political goings-on behind the scenes.

Ford (F) posted Q1 revenue of $40.7 billion and adjusted EBIT of $1.0 billion, but yanked its full-year guidance, unsurprisingly attributing the move to deepening uncertainty over tariffs and global regulations. The company now expects a $1.5 billion hit to adjusted EBIT this year, and execs promised updated guidance in Q2.

The exposure is real: Ford’s sprawling global supply chain relies heavily on imports of auto parts and raw materials, particularly from Mexico, Canada, and China. The company has already weathered billions in costs from past steel and aluminum tariffs and now faces fresh pressure as the U.S. signals a new round of levies. Shares slid more than 2% premarket.

Mattel (MAT) also beat expectations — with Q1 revenue up 2% to $827 million — but joined Ford in scrapping its 2025 forecast. The toymaker flagged up to $270 million in tariff-related costs and said it will raise prices, shift supply chains, and cost cuts to blunt the impact.

The toy giant still sources the bulk of its products from China — around 65–70% — making it one of the most tariff-sensitive U.S. brands. Mattel has pledged to cut that figure to below 15% by 2026 by investing in factories in Mexico, Vietnam, and India, but the pivot takes time. In the meantime, they’re on the front lines of a trade war that shows no real signs of resolution.

Shares of Mattel dipped 1% premarket.

In related trade-war news, Trump said on Sunday that he wants to impose 100% tariffs on foreign films — which, as the week rolls on, has some observers scratching their heads.