US stocks retreat, for drop in Almost 2 weeks on pace
U.S. stock indexes pulled back Monday, putting at least a temporary stop to their weekslong progress. The early fall comes at the start of a busy week for economies.
Even the S&P 500 was lower and it would be the very first loss in eight days for the index if it remains down. The tendency has been decidedly upward recently as stocks have grinded greater, largely in small increments. It follows a start to this year, once the S&P 500 soared following the Federal Reserve by stating it might not raise interest rates calmed investors.
This week, the investors can get more hints about the Fed’s goals. The central bank will release the minutes from the last policy meeting on Wednesday, and a report on consumer prices the day will reveal whether inflation remains modest, which will give more leeway to keep interest rates low to the Fed.
That places more attention on what CEOs say in their profit prospects for the remaining part of the year. Analysts are expecting profit growth to resume after the weak first quarter, and when these beliefs are undercut by CEOs, it would put pressure.
Investors will also be watching around the Atlantic, since the U.K. prime minister prepares to meet leaders in Germany and France ahead of a Friday deadline, if the United Kingdom is scheduled to leave from European Union. Economists worry about the drag on the economy and commerce in the event the departure happens without a withdrawal arrangement.
This comes against a background of heightened worries about economic expansion and a global trade war. Growth has slowed, and investors are wondering just how much a week’s stronger-than-expected report on U.S. jobs alters the film. Negotiations between the United States and China on their commerce dispute are ongoing.
KEEPING SCORE: The S&P 500 was down 0.2% as of noon Eastern time. It is still within 1.5percent of its latest record high set in September.
GROUNDED: Boeing climbed 4.9 percent, among the biggest declines in the S&P 500, after the company said late Friday that it will cut back production of its 737 Max plane this month. Regulators across the world grounded the jet version after it had been involved.
TRADE PROGRESS: China’s official news agency said Sunday that trade talks with the U.S. in Washington last week”achieved new progress” It said residual issues will be dealt with via”various effective methods” but didn’t elaborate on where or when additional talks will happen. It said discussions that ended Friday coped with issues involving intellectual property rights protection technology transfer steps, agriculture as well as enforcement.
White House press secretary Sarah Sanders said in an announcement Friday that”important work remains” and the two sides are in constant contact.
AP Business Writer Elaine Kurtenbach led from Bangkok.