The S&P 500 moved lower to start the week as investors monitored the latest developments on global trade, including another surprise set of tariffs from President Donald Trump.
The broad-market index shed 0.2%, while the Nasdaq Composite dipped about 0.3%. The Dow Jones Industrial Average gained 115 points, or nearly 0.3%, meanwhile.
The major indexes cut losses after data Monday from the Institute for Supply Management reflected stronger-than-expected service sector activity in April, even as company executives reported rising concern about tariffs. At its lows, the Dow fell as much as 253.99 points, while the S&P 500 and Nasdaq lost around 1% each before rebounding.
Sentiment also improved after Bloomberg reported, citing sources, that India has proposed zero tariffs on steel, auto components and pharmaceuticals on a reciprocal basis and up to a certain amount of imports.
Investors remain uncertain about the timeline of tariff deals between the U.S. and other countries.
Treasury Secretary Scott Bessent told CNBC on Monday that “we’re very close to some deals,” echoing comments from Trump on Sunday that deals could come as early as this week.
Trump told reporters on Sunday that “we’re negotiating with many countries, but at the end of this, I’ll set my own deals — because I set the deal, they don’t set the deal.” Trump added that has no plans to talk to Chinese President Xi Jinping, dashing hopes that progress is being made to ease U.S.-China trade tensions.
Trump on Sunday also authorized relevant government agencies to begin imposing a 100% tariff on films produced abroad, calling efforts from other nations to attract film productions a “national security threat.” It remains unclear if the levies would impact movies shown in theaters or movies on streaming services. Shares of Walt Disney and Netflix, which are companies that film abroad, traded lower on Monday.
“I am worried, I was hoping trade deals would be announced by now. They’re not. I don’t think the impact has hit us yet,” said Jeremy Siegel, finance professor at University of Pennsylvania’s Wharton School of Business and Wisdom Tree chief economist.
Wall Street is looking ahead to the Federal Reserve’s two-day policy meeting beginning on Tuesday, with a rate decision expected Wednesday. Fed funds futures trading points to just a 3.2% chance of a rate cut, according to the CME Group’s FedWatch tool. Still, traders are keeping a close eye on any commentary from the central bank or Fed Chair Jerome Powell on the outlook for the economy amid heightened uncertainty stemming from the trade war.
Last week, sentiment ran higher on hopes for a U.S. trade deal with major trading partners. The S&P 500 advanced nearly 1.5% on Friday, its ninth straight day of gains — its longest winning run since November 2004.
