Buffett is leaving: the end of the Oracle of Omaha era

US futures are falling, attention is on China, OPEC+ and reporting

The week began with a correction: futures on the S&P 500, Nasdaq and Dow are falling by 0.7-0.8%. The reason is Trump's tough statements about China, the expectation of new reports and decisions of central banks. The ISM business activity index in the services sector can give an important signal about the state of the economy.

Trade tensions: Trump and China

Trump is tightening his rhetoric: 145% tariffs against Chinese imports, Beijing responded symmetrically. No high-level talks are planned, but the background dialogue continues. China is assessing the "US offer", while accusing Washington of "blackmail". Geopolitical nervousness is back on the agenda.

Oil falls amid OPEC+ decisions

Brent and WTI are down about 2% after OPEC+ announced plans to increase production by 411,000 barrels per day from June. This is almost 3 times more than expected. Oil prices are again approaching 4-year lows — demand is weakening, supply is growing.

Focus on the Fed and Powell's speech

The Fed rate is expected to remain unchanged at the meeting on Wednesday, but the rhetoric of Chairman Jerome Powell may undergo minor changes. As history has shown, under pressure from Trump, Powell already changed his position during his first term in office, softening monetary policy. So it will be this time — the first "dovish notes" from the Fed may be heard at this meeting of the regulator, given the good statistics on the labor market and constant pressure from the White House.

Buffett hands over the reins

Warren Buffett will step down as head of Berkshire Hathaway at the end of 2025. He will be replaced by Vice Chairman Greg Abel. This is the end of an era: Buffett managed the famous investment holding for more than 50 years. Berkshire shares are down more than 2% in premarket trading. Abel has already said that he will be more actively involved in management.

Key events of the week

— ISM for the services sector — Monday

— Fed decisions (Wednesday) and the Bank of England (Thursday)

— Powell press conference — Wednesday

— Reports: Ford (#F), AMD (#AMD), Disney (#DIS), ConocoPhillips (#COP), Coinbase (#COIN)

— Potential start of US-China negotiations

Follow the news with the Neomarkets team!