US stocks came on Monday as the S&P 500 got on track and snapped its longest winning streak in 20 years, with mixed messages on trade policy clouding market outlook.
The S&P 500 fell 0.7% as of 9:33am in New York, the Nasdaq 100 fell 0.8%, and the Dow Jones Industrial Average lost 0.5%.
Investor attention has also been shifted to the Federal Reserve Conference on Wednesday, as President Donald Trump claims he has no intention of firing Jerome Powell, but is urging him to continue to cut interest rates.
Trump told Air Force reporters that the US could attack trade deals with several countries soon this week. He added that there are no plans to talk to Chinese President Xi Jinping for the next few days, but at some point it will remain open to alleviating tariffs in China.
According to a Morgan Stanley strategist led by Michael Wilson, a trade deal with China will be a prerequisite for the US market to maintain its recent profits. They said short-term transactions will reassure businesses that they face disruptions with limited supply chains.
There was a breather at a recent rally where the S&P 500 erased almost all of its tariff-driven losses in April. The index exceeds the 50-day moving average, with the next resistance level being at the 200-day moving average of 5,746.
