US Stocks Fall as Trade War Concerns Resurface

NEW YORK, NY — US stocks fell on Monday, May 5, after President Donald Trump threatened new tariffs, reviving fears of an escalating trade war with China. This marked the end of a historic run of stock market gains. The S&P 500 dropped about 0.6%, ending its longest winning streak in over 20 years.

The Dow Jones Industrial Average decreased nearly 0.3%, also recording its first loss in the last ten sessions, while the tech-heavy Nasdaq fell almost 0.8%.

The value of the US dollar also declined as Wall Street questioned the sustainability of confidence regarding a possible trade deal with China. Investors had previously felt optimistic due to indications that talks might resume, but no negotiations are expected to start soon.

Over the weekend, President Trump announced that he would not speak with Chinese President Xi this week, despite expressing a desire for a ‘fair deal.’ He also declared a new 100% tariff on movies produced outside the US, stating that efforts to develop this policy would begin immediately, although details were sparse.

In light of these developments, Wall Street is now turning its focus to the Federal Reserve‘s two-day policy meeting starting Tuesday. Analysts expect the Fed to maintain current interest rates, even as President Trump has pressured its chair, Jerome Powell.

Market uncertainty continues as new tariff threats and potential risks of a trade war with China loom large.

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