Trade Deal Uncertainty Leads To Decline in U.S. Stocks

Andrew Wagner

U.S. stocks declined on Monday amid uncertainty about the possibility of a trade deal.

U.S. stocks started to decline on Tuesday as investors became concerned over the possibility of a conclusion to the U.S.-China trade war, according to The Wall Street Journal.

Monday morning, there was only one sector in the S&P500 that was not red. The Dow Jones Industrial Average decreased by 115 points, a 0.4 percent decrease following a record high on Friday. The S&P500 and Nasdaq indices both decreased by 0.3 percent.

The stock market rally over the past couple of weeks was driven by better than expected third-quarter earnings. Now that most companies have reported on their earnings, investors have changed their sights to the U.S.-China trade war and whether a possible resolution is in the near future.

“The fundamental trade tension between the U.S. and China is unlikely to go away in a hurry, and I think the problem with calling it a ‘phase one’ trade deal is that it then implies there will be a ‘phase two’ trade deal,” Mike Bell, global market strategist at J.P. Morgan Asset Management said.

U.S. stocks are coming down from all-time highs amid investor concern over whether or not a conclusion to the U.S.-China trade war is in the near future.

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Economics, Finance and Investing