Stocks Drop as Tariff Fears Boost Bonds – US Market Wrap

Wall Street’s risk-off mode prevailed in the run-up to the Federal Reserve decision, with stocks falling and bonds rising as President Donald Trump’s tariff remarks failed to allay fears that his trade war would harm the economy.

After almost wiping out losses, the S&P 500 closed down nearly 1%. Trump stated that he would prescribe tariff levels and trade concessions for partners seeking to avoid higher tariffs, indicating a shift away from the idea of back-and-forth negotiations. Trade concerns boosted Treasuries, which also rose following a solid $42 billion sale of 10-year bonds.

The S&P 500 index fell 0.8%. The Nasdaq 100 declined 0.9%. The Dow Jones Industrial Average fell 0.9%.
The yield on 10-year Treasury notes fell four basis points to 4.31%. The dollar fell 0.3%.