US stocks end mostly lower

Materials and Industrial sectors were biggest decliners

U.S. stocks closed mostly lower on Monday, 24 September 2018 as the U.S.-China trade war entered a new phase when tariffs on billions of dollars of products took effect. Investors were also looking ahead to the Federal Reserve's two-day monetary policy meeting, which wraps Wednesday and is likely to result in another interest-rate hike.

The Dow Jones Industrial Average fell 181.45 points, or 0.7%, to 26,562.05 after closing at a record on Friday. The S&P 500 lost 10.31 points, or 0.4%, to 2,919.37. The Nasdaq Composite Index reversed earlier loss to rise 6.29 points to 7,993.25.

Sectors closely tied to the trade issue were among the biggest decliners materials and industrials were both down more than 1%.

Investors are closely watching the latest developments on trade relations between the U.S. and other major economies, particularly China.

US Stocks opened the week on a mostly lower note on Monday after the U.S. implemented tariffs on $200 billion worth of Chinese goods at midnight on Sunday. The S&P 500 lost 0.4% in Monday's trade, and the Dow lost 0.7%, breaking its two-session streak of record closes. The tech-heavy Nasdaq outperformed though, adding 0.1%.

In retaliation, Beijing responded to the U.S. tariffs by imposing duties on $60 billion worth of American goods and by canceling mid-level trade talks with the U.S. that had been scheduled for this week. With no trade talks on radar, there doesn't appear to be much hope for near-term reconciliation between the world's two largest economies.

In addition to the trade issue, investors will be watching the Fed, which is widely expected to announce an interest-rate increase at the conclusion of its meeting on Wednesday. The meeting will be followed by Fed Chairman Jerome Powell's news conference during which investors are expected to seek insight into the state of the economy, the impact of trade issues, or any potential change to central-bank policy.

On the economic data front, the Chicago Fed's national activity index came in at 0.18 in August, unchanged with the previous month.

Bullion prices settled mixed at Comex on Monday, 24 September 2019. Gold futures settled higher on Monday, recouping some of their recent loss as investors awaited what's widely expected to be the Federal Reserve's third interest-rate hike of 2018 this week. But silver slipped.

December gold rose $3.10, or 0.3%, to settle at $1,204.40 an ounce. It settled Friday at $1,201.30, its lowest level in a week even as it ended little changed in price for all of last week. December silver fell 1.8 cents, or 0.1%, to $14.341 an ounce. The contract was up 1.5% for last week.

Oil futures surged on Monday, 24 September 2018 with global benchmark crude prices scoring their highest settlement in nearly four years and U.S. benchmark crude finishing the session at a more than two-month high. Major oil producers declined to commit to an additional increase in crude output to address expected supply disruptions at a closely watched producer meeting over the weekend.

November Brent rose $2.40, or nearly 3.1%, to settle at $81.20 a barrel on the ICE Futures Europe exchange, following a weekly advance for crude of 0.9%.

November West Texas crude settled $1.30, or 1.8%, higher at $72.08 a barrel on the New York Mercantile Exchange, following a weekly gain of more 2.6%.

Investors did not receive any notable economic data on Monday, but will receive several reports on Tuesday, including the FHFA Housing Price Index for July, the S&P Case-Shiller Home Price Index for July, and the Conference Board's Consumer Confidence Index for September.

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