Owing to the stretch in the United States’ trade war with China, the ISM printed weaker than expected figure for factory activity in November. At 48.1, the ISM manufacturing PMI remained in contraction for the fourth month in a row. On top of that, President Trump announced earlier on Monday that tariffs on Brazil and Argentina imported metal will be restored in the upcoming weeks. Consequently, U.S stocks were reported to have taken a hit and were seen trading in the red territory.
U.S Steel Manufacturers Gained Following President Trump’s Announcement
According to the analysts, Trump’s announcement of restoring tariffs on steel and aluminum imports had an even deeper impact on the stock market as compared to the weaker economic data. Immediately after the announcement, share prices for U.S Steel Corp and AK Steel Holding Corp were reported upbeat. The U.S steel manufacturers have noted 3.9% and 6.9% gain for the day so far.
In a broader perspective, however, economists have highlighted that the drop in the manufacturing PMI will fuel the trade worries among the investors and can be expected to keep the Wall Street under pressure in the long run.
While the energy sector printed a gain of 0.54% on Monday, analysts reported it to be an exception since the S&P 500’s remaining 10 major segments were seen downbeat. The biggest decline in the S&P 500 index was noted in the technology sector that dropped over 1.56% for the day.
In light of the $11.6 billion of record-high sales on Black Friday and Thanksgiving combined, the retail stocks were expected to help stabilize the benchmark index on Monday. Against the expectations, however, the retail sector registered a loss of 1.25% earlier today.
Dow Jones, S&P 500, And Nasdaq’s Performance On Monday
Owing to the trade deal optimism, Wall Street has remained upbeat in the past weeks with all three of the major indices printing record highs at the end of November. The Dow Jones Industrial Average index was reported to have lost 224.00 points on Monday marking a loss of 0.80% following the weak economic data and Trump’s announcement. The index was last seen trading at around 27,827.
The S&P 500 also recorded a 0.80% loss and traded 25.21 points lower earlier this morning. The S&P 500 index dropped to around 3,115 on Monday. Lastly, Nasdaq registered a 1.23% decline for the day. Losing 106.64 points on Monday, the index was reported trading at around 8,558.
All in all, the benchmark S&P 500 index recorded two new 52-week lows and 16 new highs. Nasdaq, on the other hand, presented 22 new 52-week lows and 54 new highs.