Market Roundup: Poor Week for Stocks as Trade Fears with China Loom Large

Published: May 14, 2019, 5:33 p.m.

Indices kicked off the week closing in the red zone on Monday, as investors worried that trade negotiations with China were deteriorating. Although, stocks did rebound off session lows late afternoon. On another note, crude oil prices ticked up with West Texas Intermediate crude adding 0.6% to settle at $62.33 a barrel. Stocks continued to slip Tuesday bringing the Dow Jones Industrial Average to a low not seen since the beginning of the year. The S&P 500 Index and NASDAQ Composite landed in red territory as well. After a rough trading session on Tuesday, stocks were mixed midweek with the morning opening higher after President Trump tweeted about the possibility of China coming to the United States to reach a trade deal. Most of the major moves in the market were controlled by President Trump’s tweets as there is some optimism on a deal in the near future. However, as the day went on, the S&P 500 proved to be quite volatile on the trade news, finishing down 0.16%. With the help of strong earnings reports from highly watched stocks, the Dow was the only major index to finish in the green at 0.01%. The Tech-heavy NASDAQ fell 26 basis points on the day. It was back to the negative side Thursday, as President Trump’s statement that “China broke the trade deal,” weighed on the markets. Meanwhile, Commerce Department data showed the U.S. trade gap ticked up in March. The overall deficit increased 1.5% to $50 billion following a 3.6% decrease in February. The major indices managed to close Friday in the green zone with stocks rebounding in the wake of constructive U.S./China trade talks. However, the trading session was not without volatility. On another note, Labor Department numbers showed the Consumer Price Index rose 0.3% in April. The result was slightly shy of an anticipated 0.4% uptick.