Stocks stage comeback after trade tensions weigh on markets early
Stocks erased losses Monday, eking out gains after the Dow Jones industrial average fell as much as 194 points. The Trump administration continued to ratchet up trade tensions with some of the world's largest economies. The dollar and Treasury yields climbed.
Here's the scoreboard:Dow Jones industrial average: 24,304.87 +33.46 (+0.14%)
S&P 500: 2,719.37 +1.00 (+0.037%)
- The European Union warned it could hit the US with tariffs on $300 billion worth of US goods. That's after the Commerce Department opened an investigation into whether auto imports pose a national security threat, which could result in sweeping tariffs on European vehicles to the US.
- Retaliatory tariffs on $12.6 billion worth of US exports to Canada became official over the weekend. The levies were rolled out after the Trump administration in May hit allies, including Canada, with hefty tariffs on steel and aluminum.
- Trump seemed to signal that a US exit from the World Trade Organization is possible. He said if the WTO doesn't change, the US will be doing "something" about it. The comment comes after Axios reported the president wants to withdraw from the organization, an allegation Treasury Secretary Steve Mnuchin denied.
- Mexico elected Andres Manuel Lopez Obrador as its next president in a landslide victory. Lopez Obrador taking office will shift the Mexican government away from establishment politics and to the left for the first time in decades. The peso slid following the election.
And a look at the upcoming economic calendar:
- The Reserve Bank of Australia delivers its interest rate decision.
- The UK releases factory activity data.
- US markets close early on Tuesday for Independence Day.