Stocks closed lower on Monday as optimism related to a trade deal between the United States and China faded ahead of the latest round of trade talks. Reports surfaced that Chinese officials had shown reluctance in agreeing to a trade deal proposed by President Trump. The three major benchmarks closed in the red.
The Dow Jones Industrial Average (DJI) decreased 0.4%, to close at 26,478.02. The S&P 500 decreased 0.5% to close at 2,938.79. The tech-laden Nasdaq Composite Index closed at 7,956.29, gaining 0.3%. The fear-gauge CBOE Volatility Index (VIX) increased 12.9% to close at 19.26. Decliners outnumbered advancers on the NYSE by a 1.59-to-1 ratio. On Nasdaq, a 1.37-to-1 ratio favored declining issues.
How Did The Benchmarks Perform?
The Dow lost 95.7 points to close in the red. Losses for the Dow were rather broad based. Shares of 3M MMM declined 1.5% and weighed on the 30-stock index.
The S&P 500 lost 13.2 points to also end in the red. Of the 11 major sectors of the S&P 500, 10 ended in negative territory, with energy leading the decliners. The Energy Select Sector SPDR Fund (XLE) decreased 0.9% on Monday.
Meanwhile, the Nasdaq lost 26.2 points to close in the negative territory. A broad-based decline in the tech sector boosted the Nasdaq. Shares of Facebook FB lost 0.4% and weighed on the tech-heavy index. Facebook carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Trade Optimism Fades Ahead of Tariff Talks
Per a Bloomberg report, officials from China have indicated that they are ‘reluctant’ to agree to a broad trade deal proposed by President Donald Trump. Further, Chinese Vice Premier Liu He will be leading the team of Chinese officials in the latest high level talks slated to begin Thursday. He also told the visiting dignitaries that terms of the deal, if any, would not include “commitments on reforming Chinese industrial policy” or “government subsidies.”
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