U.S. stocks fell on Monday, ending the S&P 500’s longest winning streak in 20 years. The index had risen for nine straight days, a feat not seen since 2004. The Dow Jones Industrial Average also ended its nine-day winning streak, its longest since 2023.
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The market slide comes as Wall Street awaits potential developments in trade talks between the U.S. and other countries. President Donald Trump announced a 90-day pause on tariffs for countries excluding China a month ago. This has boosted stocks, but uncertainty remains about the outcomes of trade deals.
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“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, a portfolio manager at Argent Capital Management. “I don’t think anybody really has a good idea of what’s to come.”
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Treasury Secretary Scott Bessent said on Monday that the Trump administration is “very close” to finalizing trade deals with other countries. Trump also said on Sunday that agreements could be reached soon.
However, Ellerbroek does not expect “real, fulsome trade deals” to emerge within the 90-day pause.
Stocks dip amid trade uncertainty
Stocks opened lower on Monday before trimming losses as a new report showed growth in the services industry in April.
But the report also highlighted rising price pressures and ongoing 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 said on Monday that no “final” decisions have been made on imposing new tariffs on films produced outside the U.S. This comes after Trump announced a new 100% duty on foreign-made motion pictures.
Shares in major filmmakers wavered on Monday as Hollywood tried to understand the implications of potential tariffs. Netflix, Disney, Paramount, and Warner Bros. Discovery all saw their stocks fall.
Oil prices tumbled after OPEC+ announced over the weekend to increase production. Gold surged more than 2.5% to rise above $3,300 a troy ounce as investors turned back to the haven metal. Investor attention is now on the Federal Reserve’s upcoming decision on monetary policy and remarks from Fed Chair Jerome Powell on Wednesday.
Traders anticipate that the central bank will hold rates steady, given the ongoing trade war and fluctuating tariffs.
