Stock market today: Dow, S&P 500, Nasdaq slip as US-China trade tensions flare up again

US stocks retreated on Monday as trade tensions between the US and China escalated, causing concern among investors as they transitioned from a positive May. The Dow Jones Industrial Average fell by approximately 0.4%, or around 180 points. The S&P 500 saw a decline of about 0.2%, while the Nasdaq Composite remained relatively stable.

China responded to President Trump’s accusation of violating the tariff truce by blaming the US for not upholding its end of the agreement. This back-and-forth has dampened hopes for renewed trade discussions between the two major economies, adding to the ongoing trade uncertainty.

The recent market movements follow Trump’s threat to double tariffs on imported steel and aluminum, which led to fluctuations in the market. The US dollar weakened as trade war risks were assessed, with a focus on rising inflation and slowing growth. Additionally, gold futures rose as investors sought safer assets amid geopolitical concerns and trade tensions.

Looking ahead, economic data releases this week, including the May nonfarm payrolls report, will provide insights into the impact of trade disputes and interest rate expectations on the US economy. Federal Reserve officials are expected to comment on potential interest rate cuts, while earnings reports from companies like CrowdStrike, Broadcom, DocuSign, and Lululemon will also be monitored.

Biotech stocks surged in premarket trading, while Cleveland-Cliffs stock saw a significant increase after Trump’s announcement of higher steel tariffs. Meanwhile, Tesla faced challenges in European markets, with sales declining except in Norway. Oil prices rose after OPEC+ decided on a smaller-than-expected output hike for July.

In Asia, stock markets experienced declines due to geopolitical tensions and trade conflicts, with Asian stocks falling as a result. European markets, on the other hand, have outperformed US markets this year amid the ongoing trade war initiated by President Trump.