The stock market kicked off Monday’s session amid a precarious nine-day winning streak, as President Trump revived his tariff talk over the weekend.
The Dow Jones industrial average dipped by 60 points (0.2%), while the S&P 500 fell by 0.6% and the Nasdaq composite decreased by 0.7%.
On Sunday, Trump indicated that he would permit the Commerce Department and U.S. trade representatives to start the process of imposing 100% tariffs on films produced outside the country.
He stated, “The American film industry is rapidly losing ground. Other nations provide numerous incentives that lure filmmakers and studios away from the U.S. Hollywood, along with many regions in the country, is severely impacted.”
After a week of relative calm regarding tariffs, investors were hopeful that potential trade deals might stave off a recession.
Prior to Monday, both the S&P and Dow had experienced gains over the last nine sessions; Dow Jones data suggests that a ten-day winning streak would mark the S&P’s longest run since 1995. The Dow had previously climbed for 13 consecutive days in July 2023.
“A nine-day winning streak likely puts the 10-day advance/decay line at an excessive level. And that’s exactly where we find ourselves,” one analyst remarked. “As we begin this week, we’ve reached extremely overbought territory for the S&P over the last 10 days. We’re holding off on further buying until this shifts.”
Monday was relatively quiet in terms of economic news, but a wave of earnings reports and decisions from the Federal Open Market Committee regarding interest rates are on the horizon.
“The S&P 500 has erased losses from tariffs in one of the strongest bursts of momentum we’ve seen in two decades, yet it’s uncertain if this can spark a new bull market,” one expert noted. “The tariffs and the general outlook for economic slowdown still loom over the market.”
