The US markets snapped 3-day winning streak and ended lower on Monday. Lingering uncertainty about US-China trade talks weighed on markets, as new 15 percent tariffs on $165 billion worth of Chinese imports are currently still set to take effect this coming Sunday. The new round of tariffs could throw a wrench into negotiations over a phase on trade deal, which is reportedly being held up in part by a dispute over how much to roll back existing tariffs. Rising tensions between the US and North Korea also led to some caution among traders after North Korea conducted a very important test at a long-range missile launch site. President Donald Trump warned North Korean leader Kim Jong Un risks losing everything if he acts in a hostile way, leading a North Korean official to describe the president as a heedless and erratic old man.
However, overall trading activity remained somewhat subdued, with traders looking ahead to the Federal Reserve's monetary policy announcement on Wednesday. The Fed is widely expected to leave interest rates unchanged, although traders are still likely to pay close attention to the accompanying statement for clues about the outlook for rates. A lack of major US economic data also kept some traders on the sidelines ahead of the release of reports on retail sales and consumer and producer prices in the coming days.
Dow Jones Industrial Average dropped 105.46 points or 0.38 percent to 27909.60, Nasdaq lost 34.70 points or 0.40 percent to 8621.83 and S&P 500 was down by 9.95 points or 0.32 percent to 3135.96.
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