Monday morning, there was only one sector in the S&P500 that was not red. The Dow Jones Industrial Average decreased by 115 points, a 0.4 percent decrease following a record high on Friday. The S&P500 and Nasdaq indices both decreased by 0.3 percent.
The stock market rally over the past couple of weeks was driven by better than expected third-quarter earnings. Now that most companies have reported on their earnings, investors have changed their sights to the U.S.-China trade war and whether a possible resolution is in the near future.
“The fundamental trade tension between the U.S. and China is unlikely to go away in a hurry, and I think the problem with calling it a ‘phase one’ trade deal is that it then implies there will be a ‘phase two’ trade deal,” Mike Bell, global market strategist at J.P. Morgan Asset Management said.
U.S. stocks are coming down from all-time highs amid investor concern over whether or not a conclusion to the U.S.-China trade war is in the near future.