S&P 500, NASDAQ Rally pause as the rates fear relive to start the Big Fed Week

Netflix (Nflx), Warner Bros. ((Wbd), and other media stocks fell on Monday after President Trump’s call for a 100% rate to all films produced by abroad.

Stocks recovered the most intense losses in the middle of the morning, although Netflix continued to drive the falls, dropping down to 2%. Warner Bros. Discovery and Global Paramount (Into) fell around 1% after recovering -the previous session lows. Disney (Dis) Commercial plan.

Companies did not respond immediately to Yahoo Finance Comments request.

The reaction of the market takes place after Trump directed its administration on Sunday afternoon to impose “a 100% rate on any and all films that reach our country produced in foreign lands,” sending shock waves through an industry that still comes from the paralysis of pandemic and recent writers and actors.

The proposed rates could affect various lockers shot abroad, including “Avengers: Doomsday” and “Spider-Man: Brand New Day” (London); The 20th century “Avatar: Fire and Ash” (New Zealand); The “Mission: Impossible: The Final Reckoning” of Paramount (Global Locations); “Ballerina” of Lionsgate (Czech Republic); and “Star Wars: Starfighter” by Lucasfilm (United Kingdom).

“Until there is no more clarity, this new development, which should have been planned for all Hollywood Swits, will probably slow down the business or, in the worst case, will close it exactly in the same way that the strikes affected Hollywood,” a Hollywood executive told Yahoo Finance.

Veteran film producer Kathryn Arnold called the proposed rates “insensitive and devastating”, warning that they could delete low -budget films by increasing costs and disturbing a world -level interconnected system.

“If films are forced to make here, the labor price and goods and services are higher. The budgets will increase,” he said, saying that U.S. tax incentives are not enough to compensate for national production costs.

The wavy effects, he added, would hit everyone from the crew to the restoration.

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