Major US stock indexes finished trading in the red

Major US stock indexes ended the session in negative territory, which was due to the fall in quotes of almost all sectors, as well as concerns about a protracted trade war between the United States and China.

US President Donald Trump said Monday that the US is “not ready” to conclude a trade deal with China, but then added that he expects to conclude a trade agreement in the future. He also said that tariffs on imports from China could increase significantly. Trump's statements appeared after comments in the Chinese state newspaper Xinhua made it clear that China would not obey the demands of the United States to change its state economy. Disagreements between the two sides raised concerns that a protracted trade war would lead to a global economic downturn.

Meanwhile, consumer confidence data slightly improved investor sentiment. The Conference Board report showed that the US consumer confidence index improved in May to 134.1 from 129.2 in April. Analysts had expected the index to grow only to 130.0. According to the report, the current situation index, based on consumers ’assessment of current business and labor market conditions, rose from 169.0 to 175.2, while the expectations index, based on short-term consumer forecasts for income, business and labor market conditions, improved from 102.7 to 106.6.

On the other hand, data from the Federal Reserve Bank of Dallas showed that in May the business activity of Texas producers deteriorated sharply, contrary to the forecasted increase. According to the report, the manufacturing index of the Dallas Fed in May fell to -5.3 points from 2.0 points in April. Analysts had expected an increase to 5.8 points. Recall the index value below zero indicates a reduction in business activity.

Most of the components of DOW finished trading in the red (24 out of 30). Intel Corp shares were an outsider. (INTC; -2.32%). The growth leader was the shares of Visa Inc. (V; + 0.73%).

Almost all sectors of the S & P recorded a decline. The largest decline was shown by the health sector (-1.2%). Only the conglomerate sector grew (+ 0.1%).

At the time of closing:

Dow 25,347.77 -237.92 -0.93%

S & P 500 2,802.39 -23.67 -0.84%

Nasdaq 100 7,607.35 -29.66 -0.39%