The Dow Jones Industrial Average advanced modestly on Monday, adding 108.27 points to close at 41,425.70, as investors processed a leadership shift at Berkshire Hathaway and fresh signals from Washington on international trade.
While blue-chip names in healthcare and finance led the gains, the construction sector delivered a mixed performance, reflecting broader market caution.
Buffett Era Nears Its End
One of the day’s biggest headlines came from Omaha: Warren Buffett announced he will step down as CEO of Berkshire Hathaway by the end of 2025, handing the reins to Greg Abel. Buffett will remain chairman of the board.
Shares of Berkshire fell nearly 5% following the news, despite the long-telegraphed transition plan.
“Buffett is more than a CEO—he’s a symbol of market confidence,” said Jessica Li, equity strategist at Northstar Advisory. “Even though the handover was expected, it marks a profound psychological shift for investors.”
Trade Tensions Return
Volatility returned to trade-sensitive stocks after President Donald Trump floated the idea of a 100% tariff on foreign-produced films, rattling entertainment giants like Netflix. However, reports suggesting that tariffs on some Chinese imports may be rolled back gave industrial stocks a slight boost.
“Markets are caught in a tug-of-war between protectionist policies and supply chain recovery hopes,” noted Li.
Construction Stocks Show Divergence
While major indices ticked up, performance among leading construction and engineering firms was mixed:
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Caterpillar Inc. (CAT) gained 0.5%, closing at $325.30. The heavy machinery maker benefited from optimism around potential infrastructure spending tied to emerging trade deals.
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Fluor Corporation (FLR) slid 2.88% to $34.74, continuing a three-day losing streak. Analysts attributed the dip to muted investor expectations ahead of the firm’s quarterly earnings.
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AECOM (ACM) ended the day slightly higher, up 0.18% to $102.37. The company continues to benefit from steady demand in the public sector and international markets.
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Jacobs Solutions (J) remained flat, closing at $142.10. Some investors are reportedly holding off until more clarity emerges around the Fed’s next move.
Meanwhile, India’s engineering powerhouse Larsen & Toubro (L&T) posted a marginal decline of 0.03% on the BSE, despite a broader uptrend in Indian equities.
Economic Picture Murky
April’s ISM Services Index came in at 51.6, a modest increase signaling ongoing expansion in the services sector. However, S&P Global’s U.S. Services PMI dropped to a five-month low, painting a less upbeat picture of domestic demand.
“This tug between economic resilience and pockets of weakness is likely to keep construction-related stocks sensitive to every macro headline,” said David Munro, senior analyst at Built Capital Partners.
Outlook: Watch the Fed, Watch the Sector
With the Federal Reserve set to meet this week, all eyes are on Fed Chair Jerome Powell’s language regarding inflation and potential interest rate cuts. For the construction industry—where margins are already tight and borrowing costs play a key role—any hint of policy easing could provide a much-needed tailwind.
Bottom Line: The Dow’s modest rise masks deeper sector-level disparities, particularly within construction, where performance today reflected broader investor indecision in the face of policy transitions and economic headwinds.
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