Trading in United States stocks may start on a more subdued note this week, ending a winning streak that erased losses caused by President Donald Trump’s trade war.
This outlook was flagged by trading in U.S. stock futures on Sunday night (Monday AEST) with the S&P 500 and Dow Jones Industrial Average contracts down about 0.4% each and the Nasdaq-100 contract 0.5% lower.
If confirmed on the physical market, this would end the S&P’s longest consecutive gain in 20 years.
Investors on Friday (Saturday AEST) were cheered by expectations of an easing of trade tensions between the U.S. and China as Beijing indicated an interest in negotiations, economic data which lowered concerns about an American economic downturn, and corporate results.
“We do see this run up as being more based on excitement than actual, solid — not just fundamentals, but an actual change,” Dunham & Associates Investment Counsel Chief Investment Officer Ryan Dykmans was quoted as saying.
The market direction this week will be set by factors including the Federal Reserve’s policy meeting starting on Tuesday, with the chances of an interest rate cut seen as low, corporate earnings announcements and trade updates.
