S&P 500 Snap 9 Session Winning Straight, 0.6% Decline
- The S&P 500 went down for the first time in 9 days on monday. Nasdaq Also, that day had fallen a little. Dow Jones’ industrial average also declined due to being positive for most of the day. The main focus for investors remains trade deals as they look forward to the Fed meeting on Wednesday.
The S&P 500 finished its longest positive stripe in over 20 years on Monday. The S&P closed 0.6%, snapping its longest nine-session winning streak since 2004.
The Dow fell 98 points after much of the day. About 20 minutes before the market closed, the index was sold and the day was negative. NASDAQ also fell by 0.7%, closing negative closures.
All major indexes rose from the lowest session earlier in the day, but not enough to keep the losses under control. S&P and Nasdaq fell by about 1% at some point in the morning, then increased the remaining time of the day. Meanwhile, the Dow fell by 250 points.
Investors were trying to extend the excellent daily growth drive that began last month. The market has been gathering ever since President Donald Trump’s tariffs dissipated in mid-April.
The driving force behind the S&P 500’s positive run was to believe that the US would soon land some trade deals with foreign countries. At the same time, the market looked optimistic as the US and China were reaching towards launching negotiations on a trade deal.
Trade transactions continue to be the driving force behind market movement. On Monday, the market began a much lower day than where it closed on Friday, but climbed all day.
Over the weekend, Trump caught investors off guard and made another surprise tariff announcement to barely surprise fears about the lack of market certainty. On Sunday, the president announced a 100% tariff on films outside the US. The unexpected order was a blow to investors who wanted tariff levels to remain in their current location more or less. Instead, Trump has added new sector tariffs this time to the entertainment industry.
However, investors appeared to be actively responding to Scott Becent’s comments during CNBC Interview When he said the US was “very close to some deals.”
On Monday, the market received a bit of good news when the April ISM Services report measuring service companies’ conditions beating expectations. Analysts were surprised to see that the economists and CEOs warn consumer confidence as a result of the White House customs policy, resulting in an increase in economic activity in April.
For the rest of the week, all eyes will be held at the Fed meetings on Tuesday and Wednesday. Investors are largely hoping that the Federal Reserve will stabilize interest rates. Nevertheless, they will parse all the words from Federal Reserve Chairman Jerome Powell’s Wednesday press conference for further clues on the economy. So far, Powell has acknowledged that the US outlook includes “higher inflation and slower growth.”
This story was originally introduced Fortune.com