Stocks fell in early trading Monday as the latest flare-up in global trade tensions weighed on investor sentiment.
The S&P 500 and Nasdaq Composite were recently down 0.8% and 0.7%, respectively, while the Dow Jones Industrial Average dropped 1%, or more than 400 points. Stocks were little changed on Friday but posted big gains for the month of May. The benchmark S&P 500 index and the tech-heavy Nasdaq Composite turned in their best monthly performances since November 2023, as concerns about tariffs eased, corporate earnings reports were generally strong and data continued to show that the economy remains on solid footing.
Concerns about trade flared up again this morning after China accused the U.S. of violating an agreement the two countries reached last month, saying that the Trump administration had introduced new measures that “seriously undermine” the deal. The comments from Beijing come just a few days after President Donald Trump said China had “totally violated” the pact, which involved each of the countries slashing the massive tariffs they had imposed on one another.
Shares of the world’s largest technology companies were mixed this morning. Alphabet (GOOG) and Tesla (TSLA) each dropped about 2% while Microsoft (MSFT) and Amazon (AMZN) also lost ground. Chipmakers Nvidia (NVDA) and Broadcom (AVGO) both added more than 1%, while, Apple (AAPL) and Meta Platforms (META) inched higher.
Shares of the Big Three U.S. automakers slid after Trump said late Friday he plans to double tariffs on steel imports to 50%. General Motors (GM), Ford (F) and Chrysler parent Stellantis (STLA) each dropped more than 3%.
In contrast, shares of U.S. steel companies were surging following the news on higher steel tariffs. Cleveland-Cliffs (CLF) soared 27%, while shares of Steel Dynamics (STLD) and Nucor (NUE) were each up about 11%.
Energy sector shares were on the rise this morning as crude oil prices surged after the OPEC+ group of oil-producing nations decided to raise output, but by a smaller-than-anticipated amount. West Texas Intermediate futures, the U.S. crude oil benchmark, jumped nearly 4% to $63.20 per barrel. Shares of oil majors Exxon Mobil (XOM) and Chevron (CVX) were up slightly, while Devon Energy (DVN) and EOG Resources (EOG) each gained about 2%.
Gold producers were also higher this morning as gold futures rose 2.5% to $3,370 per ounce in recent trading, as some investors turned to the traditional safe haven amid the downturn in equities. Shares of Newmont Mining (NEM), the world’s largest gold producer, rose nearly 6%.
The yield on the 10-year Treasury note, which affects borrowing costs on all sorts of loans, notably mortgages, was at 4.43% this morning, up from 4.42% at Friday’s close The yield had been as high as 4.63% the week before last, its highest level in more than three months, amid rising concerns about the federal deficit as the GOP budget bill moved through Congress.
The U.S. dollar index, which measures the performance of the dollar against a basket of foreign currencies, fell 0.6% to 98.70.
Bitcoin was at $104,100 in recent trading, down from a high this morning of around $106,000.
Steel Stocks Jump as Trump Plans to Raise Steel Import Tariffs
11 minutes ago
Several U.S. steelmaker stocks surged in early trading Monday following President Donald Trump’s announcement that he plans to double tariffs on steel imports to 50%.
Cleveland-Cliffs (CLF) stock soared 27%, while shares of Steel Dynamics (STLD) and Nucor (NUE) were each up roughly 11% and Commercial Metals (CMC) added 8%.
Trump made the announcement at a U.S. Steel (X) facility in Pennsylvania on Friday, highlighting his recent support for a “partnership” between the American steelmaker and Nippon Steel after the Biden administration rejected the Japanese firm’s proposed acquisition over national security concerns. U.S. Steel shares had rallied since that announcement but were little changed Monday morning.
Trump said at Friday’s event that doubling the steel tariffs would protect U.S. jobs and lead more companies to source from American steelmakers. Research found that the 25% tariff placed on steel and aluminum imports in Trump’s first term did boost jobs in the industries, but higher metal costs led to slowed hiring in other sectors, far outweighing the boost to manufacturing hires.
The U.S. imports nearly a quarter of the steel it uses annually, bringing in just under 29 million net tons of finished and raw steel products in 2024 from Canada, Brazil, Mexico, and others, according to the American Iron and Steel Institute.
Major Index Futures Point to Lower Open
1 hr 34 min ago
Futures tied to the Dow Jones Industrial Average were down 0.3%.
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S&P 500 futures were off 0.4%.
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Nasdaq 100 futures dropped 0.6%
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