S&P 500 halts its nine-day streak of gains as market uncertainty regarding tariff agreements exerts pressure. The S&P 500 experienced a decline on Monday, bringing to a close a nine-day rally as investors kept a close watch on the most recent updates regarding global trade. The broad-market index declined by 0.64%, finishing at 5,650.38, whereas the Nasdaq Composite fell by 0.74%, concluding at 17,844.24. The Dow Jones Industrial Average experienced a decline of 98.60 points, equivalent to 0.24%, concluding the session at 41,218.83. The S&P 500 entered the session with a notable nine-day winning streak, marking its longest since 2004. At its lows, the Dow experienced a decline of 253.99 points, while both the S&P 500 and Nasdaq recorded losses of approximately 1% each before mitigating their downturns. Data released on Monday from the Institute for Supply Management indicated a robust performance in the service sector for April, surpassing expectations, despite company executives expressing increasing apprehensions regarding tariffs.
Sentiment also improved following a report from Bloomberg, which cited sources indicating that India has proposed zero tariffs on steel, auto components, and pharmaceuticals on a reciprocal basis and up to a certain amount of imports. That said, investors continue to express uncertainty regarding the timeline of tariff agreements between the U.S. and other countries. Treasury Secretary Scott Bessent informed CNBC on Monday that “we’re very close to some deals,” reflecting remarks made by Trump on Sunday, suggesting that agreements might materialize as soon as this week.
On Sunday, Trump informed reporters that “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.” Trump stated that he has no intention of engaging in discussions with Chinese President Xi Jinping, thereby undermining expectations for advancements in alleviating U.S.-China trade tensions. On Sunday, Trump authorized pertinent government agencies to initiate a 100% tariff on films produced overseas, characterizing the attempts by other countries to lure film productions as a “national security threat.” The impact of the levies on theatrical releases versus streaming services remains uncertain. On Monday, shares of Netflix experienced a decline of nearly 2%, while Paramount saw a loss exceeding 1%.
“I am concerned; I anticipated that trade deals would have been announced by this point.” They are not. “I don’t think the impact has hit us yet,” said Jeremy Siegel, finance professor at University of Pennsylvania’s Wharton School of Business and Wisdom Tree chief economist.
Wall Street is anticipating the Federal Reserve’s two-day policy meeting starting on Tuesday, with a rate decision projected for Wednesday. According to the CME Group’s FedWatch tool, Fed funds futures trading indicates a mere 4.4% probability of a rate cut. Traders remain vigilant regarding any statements from the central bank or Fed Chair Jerome Powell concerning the economic outlook, particularly in light of the increased uncertainty arising from the trade war.