Stocks continue lower as threat of U.S.-China trade war lingers.
U.S. stocks declined Monday, as traders continued to weigh the prospect of an all-out trade war between China and the United States.
The Dow Jones Industrial Average (NYSEARCA:DIA) declined 102.94 points, or 0.4%, to 24,987.54.
The broader S&P 500 Index (NYSEARCA:SPY) drifted 0.2% lower to close at 2,773.86. A majority of the S&P 500’s 11 primary sectors finished lower, with consumer staples and telecommunication services leading the declines.
Meanwhile, the technology-driven Nasdaq Composite Index (NYSEARCA:QQQ) pared losses to settle at 7,747.02, where it was virtually unchanged.
A measure of 30-day volatility known as the CBOE VIX (NYSEARCA:VXX) rose on Monday, as traders evaluated new developments on the international trade front. The so-called “fear index” rose 3% to 12.34, on a scale of 1-100 where 20 represents the historical average.
Trade tensions have sparked a flight from risk assets after the Trump administration on Friday announced it would move ahead with planned tariffs on Chinese goods. Washington will implement a 25% tariff on up to $50 billion worth of Chinese goods.
In response, Beijing has announced it would duties on up to $34 billion in U.S. goods, including agricultural products.
The Final Word: An escalating trade war between the United States and China threatens to disrupt Wall Street’s recent bout of good fortune. Investors are generally averse to any sign of protectionism, which could prompt a flight to haven assets in the short term.