(Reuters) – U.S. stocks fell on Monday after President Donald Trump said he would restore tariffs on metal imports from Brazil and Argentina, while weak domestic manufacturing data fanned worries of a slowing economy due to a prolonged trade war with China.
Trader Jonathan Corpina works with children during a traditional bring-your-kids-to-work day on the floor at the New York Stock Exchange (NYSE) in New York, U.S., November 29, 2019. REUTERS/Brendan McDermid
The U.S. economy’s manufacturing sector contracted for a fourth straight month in November, as new order volumes slid back to around their lowest level since 2012. Construction spending also unexpectedly fell in October.
The figures were in sharp contrast to recent economic indicators that had reassured investors of a resilient domestic economy. Global markets had also cheered an unexpected rebound in Chinese manufacturing earlier in the day. [MKTS/GLOB]
However, Trump’s tweet about restoring tariffs on U.S. steel and aluminum imports dampened sentiment. The news sent shares of U.S. steel makers including U.S. Steel Corp (X.N) and AK Steel Holding Corp (AKS.N) up 3.9% and 6.9%, respectively.
“It is all about the macro news today and that is basically overshadowing the good news on Black Friday and Cyber Monday,” said Peter Cardillo, chief market economist at Spartan Capital Securities in New York.
“The fact that the manufacturing sector is still in recession obviously also rekindles trade worries.”
Energy shares .SPNY rose 0.54% tracking oil prices. [O/R]
The gains were an exception, with the other 10 major S&P 500 sectors trading lower. The technology sector .SPLRCT slipped 1.56% and was the