U.S. stocks slipped Monday, ending a historic rally as investors grew cautious over renewed trade tensions and awaited signals from the Federal Reserve.
The S&P 500 dropped 0.64% to 5,650.38, breaking a nine-day winning streak — its longest since 2004. The Nasdaq Composite fell 0.74% to 17,844.24, and the Dow Jones Industrial Average dipped 0.24% to 41,218.83.
Stocks opened lower as President Trump escalated tariff rhetoric over the weekend, including a proposed 100% levy on foreign films, which hit shares of Netflix and Paramount.
The announcement added to existing uncertainty around trade negotiations, particularly with China. Trump said he had no plans to speak with President Xi Jinping, despite earlier hopes of resumed talks.
Losses across the major indexes deepened during the day but eased after stronger-than-expected U.S. services sector data and a Bloomberg report that India may offer tariff-free access for select goods on a reciprocal basis.
Trade deals are close
Treasury Secretary Scott Bessent suggested trade deals are near, echoing Trump’s comments that new agreements could arrive this week. Still, many investors remain skeptical.
The pullback comes ahead of a key Fed decision on Wednesday. Markets are pricing in just a 3.2% chance of a rate cut, but investors will closely watch Fed Chair Jerome Powell for commentary on the economic outlook amid trade uncertainty.
