(Bloomberg) — U.S. stocks fell on disappointing factory data and after President Donald Trump’s move on tariffs rekindled concern over trade risks. Bonds dropped.
The S&P 500 Index lost steam, following its best month since June, as a gauge of U.S. manufacturing contracted for a fourth straight month against a backdrop of weaker orders and subdued production. Equities also slid after Trump said he’s restoring tariffs on steel and aluminum from Argentina and Brazil.
The latest tariff development outweighed bets the U.S. and China were close to signing the first part of a trade deal. Meantime, the unexpected drop in U.S. manufacturing showed the sector lacks momentum amid a still-simmering trade war.
“It’s all part of the same narrative, right?” Tom Porcelli, chief U.S. economist at RBC Capital Markets, told Bloomberg TV. “There’s a narrative problem in the manufacturing space and the narrative problem obviously stems from trade. Until you actually can sign this deal, I think that manufacturing will remain under pressure.”
Read: JPMorgan Sees Global Economic Pickup Spurring Subpar Returns
Elsewhere, oil rebounded from the biggest weekly loss since October on speculation that OPEC+ could defy expectations by deepening its production cuts.
Here are some key events coming up this week:
Saudi Aramco’s initial public offering is scheduled to be priced on Thursday.Friday brings the U.S. jobs report, where estimates are for non-farm payrolls to rise by 190,000 in November.
Here are some of the main moves in markets:
Stocks
The S&P 500 fell 0.5% to 3,126.18 as of 10:16 a.m. New York time.The Stoxx Europe 600 Index sank 0.8%.The MSCI Asia Pacific Index rose 0.5%.
Currencies
The Bloomberg Dollar Spot Index fell 0.1%.The euro climbed 0.3% to $1.1046.The Japanese yen was little changed at 109.53 per dollar.
Bonds
The yield on 10-year Treasuries rose seven basis points to 1.85%.Germany’s 10-year yield jumped eight basis points to -0.28%.Britain’s 10-year yield climbed five basis points to 0.751%.
Commodities
The Bloomberg Commodity Index rose 0.4%.West Texas Intermediate crude gained 2.2% to $56.39 a barrel.Gold declined 0.5% to $1,464.70 an ounce.
–With assistance from Nancy Moran, Adam Haigh, Yakob Peterseil, Sam Potter and Sarah Ponczek.
To contact the reporters on this story: Rita Nazareth in New York at [email protected];Vildana Hajric in New York at [email protected]
To contact the editors responsible for this story: Jeremy Herron at [email protected], Rita Nazareth
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