Stocks finished lower Tuesday. The major averages fluctuated as investors continue to monitor ongoing trade tensions. The Dow dipped 14 points, snapping a six-session winning streak. The S&P 500 erased its early advance to close less than 0.1% lower, ending its best stretch of gains since April. The Nasdaq Composite closed slightly below unchanged.
President Trump’s announcement that proposed duties on Mexican imports would be suspended helped lift investor sentiment Monday. However, President Trump also warned that new tariffs would be implemented on Chinese goods if no progress follows the G-20 summit later this month. Seven of 11 S&P 500 sectors edged higher, with the more defensive Consumer Staples sector leading advancers. Industrials weighed on the major averages, losing 0.9% on pressure from trade uncertainty. Facebook climbed 1.9% to $178.10 on the heels of an analyst upgrade, boosting the FAANG group 0.6% on the day. Meanwhile, Beyond Meat dropped 25% to $126.04 following an analyst downgrade.
Breadth was even on issues on the NYSE and negative by 6:5 on the Nasdaq. Composite NYSE volume was more than 3.2 billion shares.
The potential for a Federal Reserve interest rate cut also remains in focus ahead of next week’s FOMC meeting. Treasuries were little changed with the yield on the 10-year note flat at 2.14% despite producer price inflation rising for a second consecutive month in May. A separate data release from the NFIB showed small business optimism jumped to the highest level in seven months as companies boosted capital spending plans.