- Reuters/Brendan McDermid
Stocks were mostly lower Monday as trade escalations between the US and China and turmoil in the Justice Department rattled markets, days after the Dow Jones industrial average and S&P 500 had hit record highs. The dollar was mostly unchanged against a basket of peers, and Treasury yields jumped.
Here’s the scoreboard:
Dow Jones industrial average: 26,561.64 −181.86 (0.68%)
S&P 500: 2,919.89 −9.78 (0.33%)
Nasdaq Composite: 7,993.25 +6.29 (0.079%)
- Chaos in Washington has Wall Street on edge. Axios reports Deputy Attorney General Rod Rosenstein, who oversees the Mueller investigation, is considering resigning after he was said to have discussed invoking the 25th Amendment to remove President Donald Trump from office. Following the explosive report, White House Press Secretary Sarah Sanders said Rosenstein will meet with the president on Thursday.
- World leaders meet at the United Nations General Assembly. All eyes are on Trump, who will give a general address and later lead a nonproliferation meeting. Meanwhile, Prime Minister Justin Trudeau said it’s “very likely” there will be sideline talks on a North American trade agreement, which Trump has threatened to exclude Canada from.
- The US and China enacted another round of tariffs on each other. China, retaliating against the Trump administration, accused the US of “trade bullyism” and cancelled talks proposed by Treasury Secretary Steve Mnuchin. The escalations raised fears a trade war between the world’s largest economies could drag on for years.
And a look at the upcoming economic calendar:
- The Federal Reserve is expected to raise its benchmark interest rate.
- The US reports on final GDP, trade, and manufacturing activity.
- The EU and the US hold high-level trade talks in New York.
- The Conference Board releases its latest consumer confidence reading.