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U.S. stocks fell in morning trading on Monday, with the Dow industrials on track for a five-day losing streak as trade-war fears continued to dog global markets.
The day’s losses were widespread, with nine of the 11 primary S&P 500 sectors down on the day. Consumer staples fell 1.5%, as did health-care stocks. The only sector to show pronounced strength on the day was energy, which rose 1.3%, tracking a 1.1% rise in the price of Brent crude futures.
What are the main benchmarks doing?
The Dow Jones Industrial Average fell 175 points, or 0.7%, to 24,919. The S&P 500 was down 0.3%, or 9 points, to 2,770. The Nasdaq Composite Index fell 5 points, or 0.1%, to 7,741, having recovered significantly off its lows.
The Cboe Volatility Index jumped 6.8%, though at 12.80 it remains well below its long-run historical average near 20.
The Dow is up 0.8% for the year, while the S&P has gained 3.6%; both remain a few percentage points below record levels. The Nasdaq is up 12% for the year and is just below an all-time closing high hit Thursday.
What’s driving markets?
Markets remain fixated on an escalating trade spat between the U.S. and China. President Donald Trump on Friday announced tariffs on $50 billion worth of Chinese imports, and Beijing retaliated by targeting high-value American exports.
What are strategists saying?
“Trade tensions with China have consistently been the biggest driver of equity volatility recently,” said Alec Young, managing director of global markets research at FTSE Russell, in a note. “If the current trade skirmish with China were to escalate into a full-blown trade war, it could potentially have a materially negative impact on corporate earnings growth.”
What are other markets doing?
European stocks traded lower, after Asian markets ended mostly lower, though Chinese markets were shut for a holiday.
Gold futures gained, the U.S. oil benchmark was modestly higher, and Brent crude climbed 1.1%, rebounding after a sharp decline on Friday. The ICE U.S. Dollar Index was little changed.
Which economic reports are in focus?
The National Association of Home Builders’ monthly confidence index fell two points to 68 in June, in part due to rising lumber costs. The SPDR S&P Homebuilder ETF fell 0.2%.
On the Federal Reserve front, incoming New York Fed President John Williams is due to speak in New York at 4 p.m. Eastern at a conference focused on reforming behavior in financial services.
Check out: MarketWatch’s Economic Calendar
Which stocks are in focus?
Shares in Tesla Inc. rose 1.2% after CEO Elon Musk showed off the electric-car maker’s newest production line in a weekend tweet. He also predicted that those who are short on Tesla—meaning that they are betting for the stock to decline—“have about three weeks before their short position explodes.”
Valeant Pharmaceuticals International Inc. sank 6.4% after the Food and Drug Administration failed to approve a lotion product intended to treat plaque psoriasis.
U.S.-listed shares of Chinese e-commerce retailer JD.com Inc. jumped 2.2% in heavy trading after Google invested $550 million in the company. Google is a division of Alphabet Inc.
Solid Biosciences Inc. said the Food and Drug Administration had lifted its clinical hold on the company’s treatment for Duchenne muscular dystrophy, allowing a Phase 1/11 trial to resume. Shares gained 6.9%.
Rent-A-Center Inc. surged 22% after it agreed to be taken private by Vintage Capital, a private and public equity firm, in a deal valued at about $1.365 billion.
Ziopharm Oncology Inc. plummeted 15% after the Food and Drug Administration placed a clinical hold on a Phase 1 trial of a treatment for cancer.
In the energy sector, Marathon Oil Corp. rose 2.7%, while Occidental Petroleum Corp. was up 1.7%.