US Stocks Slide as Trade Negotiations Weigh on Market Sentiment
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A report from CNN revealed that US stocks declined on Monday, bringing an end to a historic rally for the S&P 500 as investors eagerly awaited potential developments in trade negotiations between the United States and other countries.
The Dow Jones Industrial Average fell by 99 points, or 0.24%, while the S&P 500 declined by 0.64%. The tech-heavy Nasdaq Composite also slid by 0.74%. According to CNN, the S&P 500 snapped a nine-day winning streak, its longest winning streak since 2004. The Dow also ended its nine-day winning streak, its longest since 2023.
This week marks one month since President Donald Trump announced a 90-day pause on his “reciprocal” tariffs on countries except China. As reported by CNN, Wall Street has received a boost in the past month due to the tariff pause, yet there is continued uncertainty about what trade deals might actually look like. Jed Ellerbroek, portfolio manager at Argent Capital Management, noted that “the market is intensely focused on where the tariff rates end up, and it’s bouncing around day to day as those assessments change.”
As CNN reported, Ellerbroek added that “I don’t think anybody really has a good idea of what’s to come.” Treasury Secretary Scott Bessent on Monday told CNBC that the Trump administration is “very close” to trade deals with other countries, echoing comments made by Trump on Sunday that trade deals “could very well” happen this week.
According to CNN, Trump said to reporters aboard Air Force One on Sunday, “We’re negotiating with many countries, but at the end of this I’ll set my own deals because I set the deal, they don’t set the deal, I set the deal.” Ellerbroek said while it’s difficult to predict what will come out of the next few weeks, he doesn’t expect “real, fulsome trade deals” will emerge in the span of the 90-day pause.
In an interview with CNN, Ellerbroek stated, “I don’t anticipate a satisfactory conclusion of this tariff issue in the 90 days.” The market has been influenced by various factors, including a new report from the Institute for Supply Management, which showed growth in the services industry in April. However, the report also showed rising price pressures and looming uncertainty around tariffs.
A survey respondent in the real estate, rental and leasing industry, as quoted in CNN, noted that “uncertainty remains the dominating theme as the US government has been maddeningly inconsistent with tariff implementation.” The White House on Monday said no “final” decisions have been made on imposing new tariffs on films produced outside the United States.
As reported by CNN, shares in major filmmakers wavered on Monday as Hollywood tried to digest the implications of a potential tariff. Netflix fell by 1.94%, Disney declined by 0.41%, and Paramount slid by 1.57%. Warner Bros. Discovery, the parent company of CNN, also declined by 1.99%.
Analysts at Invesco, as cited in CNN, noted that “markets remain highly vulnerable to negative data and policy announcements.” In commodities markets, oil prices tumbled on Monday after OPEC+ announced plans to increase production. US oil fell by 1.99% to around $57.13 a barrel, while Brent crude slid by 1.7% to around $60.25 a barrel.
According to CNN, gold surged more than 2.5% to rise above $1,300 a troy ounce as investors flocked back to the haven metal. This week, investors will be focused on the Federal Reserve’s decision on monetary policy and remarks from Fed Chair Jerome Powell on Wednesday afternoon.
As reported by CNN, traders widely expect the central bank to hold rates steady. Greg McBride, chief financial analyst at Bankrate, noted that “uncertainty rules amid a trade war and the ever-changing landscape of tariffs. But with the hard data on consumer spending and employment still hanging in there, the Fed will remain firmly planted on the sidelines.”
The content of this article was provided by CNN.
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