US stocks slid Monday and a historic rally for the S&P 500 lost steam as Wall Street awaited potential developments in trade negotiations between the United States and other countries. The Dow lost 99 points, or 0.24%. The broader S&P 500 fell 0.64% and the tech-heavy Nasdaq Composite slid 0.74%. The S&P 500 snapped a nine-day winning streak, which was its longest winning streak since 2004. The Dow also snapped a nine-day winning streak, which was 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. 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. “The market is intensely focused on where the tariff rates end up, and it’s bouncing around day to day as those assessments change,” said Jed Ellerbroek, portfolio manager at Argent Capital Management. “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. “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,” Trump said to reporters aboard Air Force One on Sunday. 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. “I don’t anticipate a satisfactory conclusion of this tariff issue in the 90 days,” he said. Tariff uncertainty underpins market moves Stocks opened the day lower before trimming losses across the day as a new report from the Institute for Supply Management showed growth in the services industry in April. However, the report also showed rising price pressures and looming uncertainty around tariffs. “Uncertainty remains the dominating theme as the US government has been maddeningly inconsistent with tariff implementation,” said one survey respondent in the real estate, rental and leasing industry. The White House on Monday said no “final” decisions have been made on imposing new tariffs on films produced outside the United States. The statement comes after Trump on Sunday said he would apply a new 100% duty on foreign-made motion pictures. Shares in major filmmakers wavered on Monday as Hollywood tried to digest the implications of a potential tariff, which were not immediately clear. Netflix (NFLX) was down 1.94%. Disney (DIS) fell 0.41% and Paramount (PARA) slid 1.57%. Warner Bros. Discovery (WBD) slid 1.99%. (CNN is owned by Warner Bros. Discovery). “Markets remain highly vulnerable to negative data and policy announcements,” analysts at Invesco said in a Monday note. In commodities markets, oil prices tumbled Monday after OPEC+ over the weekend announced plans to increase production. US oil fell 1.99% to around $57.13 a barrel, hovering around its lowest level in over four years. Brent crude, the global benchmark, slid 1.7% to around $60.25 a barrel and also hovered around its lowest level in over four years. Gold surged more than 2.5% to rise above $3,300 a troy ounce as investors flocked back to the haven metal. Gold, which has soared to new highs this year, has fluctuated the past two weeks after briefly topping a record high $3,500 a troy ounce on April 22. Fed in focus Investors this week will be focused on the Federal Reserve’s decision on monetary policy and remarks from Fed Chair Jerome Powell on Wednesday afternoon. Traders widely expect the central bank to hold rates steady, according to the CME FedWatch Tool. “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,” said Greg McBride, chief financial analyst at Bankrate, in emailed remarks. After Commerce Department data last week showed better-than-expected job growth, traders and Wall Street analysts have dialed back their expectations for rate cuts this year. Barclays and Goldman Sachs on Friday pushed back their expectation for the first Fed rate cut this year to July from June. “Greed” was the sentiment driving markets on Monday for the first time since December, according to CNN’s Fear and Greed Index.
S&P 500 snaps its longest winning streak in 20 years as tariff uncertainty weighs on markets
TruthLens AI Suggested Headline:
"S&P 500 Ends Longest Winning Streak in 20 Years Amid Trade Tariff Uncertainty"
CNN
7.6
TruthLens AI Summary
U.S. stocks experienced a downturn on Monday, marking the end of the S&P 500's longest winning streak in nearly two decades. The S&P 500 fell by 0.64%, while the Dow Jones Industrial Average lost 99 points, or 0.24%, and the Nasdaq Composite decreased by 0.74%. This decline followed a nine-day winning streak for the S&P 500, which was its longest since 2004, and for the Dow, which was its longest since 2023. The market's recent rally was largely attributed to a 90-day pause on tariffs announced by President Donald Trump a month prior, but uncertainty about the future of trade negotiations loomed large. Analysts noted that the market's focus was intensely centered on tariff rates, with daily fluctuations reflecting ongoing assessments of the trade landscape. Portfolio manager Jed Ellerbroek expressed skepticism about the emergence of substantial trade deals in the near term, stating that he did not expect a satisfactory resolution to the tariff issues within the designated 90 days.
Market reactions were further complicated by conflicting reports regarding potential new tariffs, particularly on films imported from outside the U.S. Following Trump's declaration of a potential 100% duty on foreign-made motion pictures, major film studio stocks fluctuated, with Netflix, Disney, and Paramount all seeing declines. Additionally, oil prices dropped significantly after OPEC+ announced plans to increase production, with U.S. oil falling nearly 2% to around $57.13 per barrel. In contrast, gold prices surged over 2.5%, attracting investors looking for safe-haven assets amidst the prevailing market uncertainties. The upcoming Federal Reserve meeting this week is also in focus, with analysts expecting the central bank to maintain steady interest rates in light of stable consumer spending and employment data. As market sentiment shifts towards caution, the uncertainty surrounding tariffs and trade continues to be a dominant theme, influencing investor behavior and market dynamics.
TruthLens AI Analysis
The article provides an overview of the recent fluctuations in the US stock market, particularly focusing on the S&P 500's longest winning streak being interrupted due to tariff uncertainties. The report highlights the impact of trade negotiations on market sentiment and investor behavior, emphasizing the cautious mood on Wall Street.
Market Reactions and Trends
The article notes that US stocks experienced a decline, with the S&P 500 and other major indices, such as the Dow and Nasdaq, losing ground. This decline was attributed to uncertainty surrounding trade deals, particularly in light of President Trump's announcement regarding a temporary pause on tariffs. The mood of the market appears to be heavily influenced by the prospect of future trade agreements, with investors reacting sensitively to news and statements from government officials.
Investor Sentiment and Expert Opinions
Commentary from experts like Jed Ellerbroek reveals a lack of confidence in the likelihood of substantial trade deals emerging from the ongoing negotiations. This uncertainty is reflected in the stock market's volatility, as investors are unsure of how tariff rates will ultimately be determined. The mention of Treasury Secretary Scott Bessent stating that deals are "very close" contrasts with Ellerbroek's skepticism, illustrating a divergence in expert opinions regarding the future of trade negotiations.
Implications for the Economy and Society
The article suggests that the ongoing tariff uncertainty could continue to weigh on market performance in the coming weeks. This situation could lead to broader economic ramifications if trade deals do not materialize as hoped, potentially affecting employment, inflation, and overall economic growth. The focus on tariffs and trade may also contribute to a tense political atmosphere, especially as public sentiment is influenced by the administration's handling of these issues.
Potential Manipulative Aspects
While the report presents factual information, the way it frames the uncertainty may lead to heightened anxiety among investors. The emphasis on tariff negotiations and the mixed messages from officials could be seen as a means of shaping public perception regarding the stability of the market. This framing could potentially serve to manipulate investor behavior, prompting reactions that align with the interests of certain financial entities.
Comparison with Other Reports
When compared to other news articles covering similar topics, this piece aligns with a broader narrative of apprehension surrounding trade policies and their impacts on the stock market. It reflects a common concern among investors and analysts regarding the unpredictable nature of political and economic developments.
Overall Reliability
The article appears to provide a mostly accurate portrayal of the current state of the market and trade negotiations. However, the emphasis on uncertainty and expert skepticism may skew public perception towards a more negative outlook than warranted. This focus could lead to an overreaction by investors, suggesting a need for careful consideration of the information presented.
In conclusion, the article serves to inform readers about the potential implications of tariff uncertainties on the stock market, while also stirring a sense of caution among investors regarding future developments.