US Equities Decline as Investors Await Trade Deal Updates and Earnings Reports
Stocks declined on Monday as investors awaited trade deal updates from the White House. Key factors influencing markets included:
- Trump’s confirmation not to replace Fed Chair Powell.
- Treasury Secretary Bessent's comments on U.S.-China trade tariffs being "unsustainable."
The S&P 500 and Nasdaq Composite indexes fell by up to 1.4% and 1.7%, respectively. By 2 PM ET, losses were reduced to 0.5% for the S&P 500 and 0.8% for the Nasdaq.
This week, earnings reports from Microsoft and Meta (Wednesday), Apple and Amazon (Thursday) will be significant. Concerns about Apple's reliance on Chinese supply chains persist amid tariff discussions. Higher tariffs could impact iPhone prices, affecting American consumers and retirement accounts.
Alphabet expressed concerns over potential changes to import exemptions affecting ad spend due to increased retail costs. Tesla acknowledged that higher tariffs are detrimental but received positive investor reactions to CEO Musk's role reduction at DOGE.
Monitor developments closely as this week unfolds.