Fears of a trade war between the U.S. and China continue to linger
U.S.-China trade tensions weighed at the start of Monday's session, but sentiment eventually improved, allowing stocks to escape with just minor damage on 18 June 2018. The Dow Jones Industrial Average registered its fifth straight decline on Monday, but stocks broadly managed to finish above session lows as gains in energy and technology shares helped to limit declines partly inspired by fears over trade tensions between the U.S. and China.
The Dow fell 103.01 points, or 0.4%, to 24,987.47, led by drops in Intel and Boeing. The benchmark hit a session low near the open, down 264.71 points, before stopping that tumble. The S&P 500 index closed down 0.2%, or 5.79 points, to 2,773.87. The Nasdaq Composite Index meanwhile, ended less than a point higher, up 0.65 points, or less than 0.1%, at 7,747.03, with the technology-laden benchmark also reversing its early opening declines.
Markets remain fixated on the escalating trade spat between the U.S. and China. President Donald Trump on Friday announced tariffs on $50 billion worth of Chinese imports, and Beijing retaliated by targeting high-value American exports.
The ICE U.S. Dollar Index, a measure of the dollar against a half-dozen major currencies, was up by less than 0.1% at 94.84, holding near 2018 highs.
On the data front, Monday's lone economic report, the NAHB Housing Market Index for June, came in at 68, slightly lower than the consensus of 70.
Crude oil prices finished higher on Monday, 18 June 2018 to recoup some of their recent losses, as traders assessed escalating trade tensions between the U.S. and China.
July West Texas Intermediate crude rose 79 cents, or 1.2%, to settle at $65.85 a barrel on the New York Mercantile Exchange, after losing 2.7% on Friday and posting a loss of 1% last week. Global benchmark Brent crude for August delivery added $1.90, or 2.6%, to $75.34 a barrel on ICE Futures Europe, following a decline of 3.3% Friday and a roughly 4% loss last week.
Investors were fixated on how trade-related disagreements between the U.S. and China are escalating. President Donald Trump on Friday announced tariffs on $50 billion worth of Chinese imports, and Beijing retaliated by targeting high-value American exports.
Bullion prices ended in a mixed mode on Monday, 18 June 2018 at Comex. Gold futures notched a modest gain on Monday, after a drop late last week that took the commodity to the lowest close of 2018, as trade tensions elevated global uncertainty, providing support for bullion prices. Silver prices dropped.
August gold rose $1.60, or 0.1%, to settle at $1,280.10 an ounce, after booking the lowest settlement since December and producing a roughly 1.9% weekly decline on Friday. July silver settled down 0.2% at $16.44 an ounce, after registering a 1.6% weekly decline on Friday.
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