US stocks ended a mixed finish on Monday, with the S&P 500 rising 0.1% to extend its winning streak to five days, while investors await potential flashpoints this week that could bring sharp swings in financial markets.
The S&P 500 rose due to hopes of President Donald Trump backing down on his trade war tariffs, but tech stocks such as Amazon and Microsoft fell ahead of their earnings reports. Other influential companies like Caterpillar and Exxon Mobil are also set to report their latest results, which will give insights into economic conditions.
Several US companies have already slashed their profit estimates due to uncertainty about the impact of Trump’s tariffs. Bank of America strategist Savita Subramanian said that while some plans have been made to mitigate tariff impacts, there are indications of a pause in hiring and new projects.
The fear is that Trump’s on-again-off-again tariffs may be affecting household spending and long-term investment. Economic reports show the US economy still growing but at a weaker pace.
Treasury yields fell, with investors expecting interest rate cuts from the Federal Reserve later this year. The yield on the 10-year Treasury fell to 4.21% as investor expectations grew that the Fed would deliver cuts to stimulate the economy.
Source: https://apnews.com/article/stocks-markets-tarifffs-trump-china-5a614e961c46ad406e47caf18fa78d74