U.S. Stocks, Dollar Retreat as Trump Targets Trade: Markets Wrap

  • Treasuries rise as Trump strikes protectionist tone on trade
  • Crude slumps, gold rallies as haven trades back in focus

Gallo: Three Testing Grounds for Trump's Policies

U.S. stocks fell with the dollar while Treasuries gained as the Trump administration targeted reworking America’s trade relationships as investors await further details on the new president’s plans to boost government spending.

Energy and industrial shares led the S&P 500 Index lower, though equities finished above their session lows. European shares fell to the lowest level of 2017. McDonald’s Corp. and Halliburton Co. declined after results disappointed. The greenback slid against all major peers after capping a fourth weekly retreat. Gold rose to the highest since November. Ten-year Treasury yields fell a second day.

President Donald Trump promised a “very major” border tax, signed an executive orders to withdraw the U.S. from the Trans-Pacific Partnership trade deal and announced over the weekend he’d seek to renegotiate the North American Free Trade Agreement. Investors have been looking for details on campaign-trail promises to boost growth and government spending.

Money managers will be dissecting earnings from some of the world’s largest companies this week with Alphabet Inc., Samsung Electronics Co. and Alibaba Group Holding Ltd. all reporting results.

Read our Markets Live blog here.

Here are the main moves in markets:

Stocks

  • The S&P 500 Index fell 0.3 percent to 2,265.34 at 4 p.m. in New York, rebounding from the lowest level since Jan. 3. The Dow Jones Industrial Average slid to 19,800.70, clinging to a 0.2 percent advance in 2017.
  • McDonald’s lost 0.7 percent after U.S. sales at restaurants open at least a year fell more than anticipated. Halliburton retreated 2.9 percent even after posting adjusted profit that topped estimates.
  • The Stoxx 600 benchmark index fell 0.4 percent to the lowest close since December.
  • The MSCI Emerging Market Index jumped 1 percent to the highest since Nov. 8.

Currencies

  • The Bloomberg Dollar Spot Index slid 0.7 percent to the lowest since Dec. 14, the day the Federal Reserve raised interest rates. 
  • It has fallen for four straight weeks, the longest retreat since February. 
  • The euro climbed to $1.0747 and the yen rose 1.4 percent to 113.04 per dollar.
  • The Mexican peso strengthened 1 percent to 213675 per dollar.

Bonds

  • The yield on the 10-year Treasury declined eight basis points to 2.39 percent, extending after Trump vowed “a very major border tax” on imports in a meeting with business leaders.
  • The yield fell below the 50-day moving average of 2.392 percent. The last time it closed below that level was Jan. 17.
  • Yields on similar-maturity German bunds fell six basis points to 0.36 percent.

Commodities

  • Gold futures climbed to a two-month high, adding 0.9 percent to settle at $1,215.60 an ounce in New York. The metal has increased in 10 of the past 11 sessions. It touched $1,219.40, the highest since Nov. 22. Prices are up about 5.6 percent this month.
  • West Texas Intermediate crude oil fell 0.9 percent to settle at $52.77 a barrel. U.S. drillers added the most rigs in more than three years, making it difficult for OPEC to drain global oversupply.

— With assistance by Natasha Doff, Eddie Van Der Walt, Edward Ludlow, Neil Denslow, Adam Haigh, Dana El Baltaji, Stephen Kirkland, David Goodman, and Todd White

    Before it's here, it's on the Bloomberg Terminal.
    LEARN MORE