2 things driving Tuesday's stock market drop, a day before the Fed's rate decision

CNBC

06-05-2025

Every weekday the CNBC Investing Club with Jim Cramer holds a "Morning Meeting" livestream at 10:20 a.m. ET. Here's a recap of Tuesday's key moments. 1. The stock market is lower on Tuesday after breaking a nine-session win streak on Monday. While no major economic news is in play, multiple companies, including Ford , Marriott , Mattel , and Clorox , either pulled or lowered guidance due to tariffs and macro uncertainties. Palantir 's stock is getting hammered despite a better-than-expected quarter. The S & P Short Range Oscillator exited Monday's session still in very overbought territory. 2. The Federal Reserve began its two-day May meeting on Tuesday. According to The Wall Street Journal , President Donald Trump 's tariff policies have put the central bank in flux on whether to hold steady rates and keep fighting inflation or lower rates to address weakened economic growth. Fed Chairman Jerome Powell said in March that he's inclined to hold rates steady. Trump has been pushing Powell to cut rates. The market is leaning toward three rate cuts this year, according to the latest reading of the CME FedWatch tool. 3. Dover has agreed to acquire German-based Sikora in an all-cash deal of 550 million euros. It's expected to close in the second quarter. Sikora, a leading provider of precision measurement and control solutions, will become part of Dover's pumps and process solutions segment, which includes products for data centers. Dover shares a modestly lower in the weaker market. Meanwhile, shares of Coterra fell 8% despite decent earnings. Investors selling the stock might be hung up on some operational issues in part of the company's Texas acreage. Check your afternoon texts and emails for our full commentaries on both stocks. (Jim Cramer's Charitable Trust is long DOV. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.