Asian shares fell with benchmarks declining in Japan, Australia and South Korea. In posts to his Truth Social network on Monday, Trump claimed China had failed to follow through on promises to crack down on drugs, and the levies on Mexico and Canada were needed to clamp down on migrants and illegal drugs flowing into the US. Treasuries fell.
Ttrump’s comments came after US stocks and Treasuries had climbed Monday as traders welcomed the former president’s pick of Scott Bessent for Treasury Secretary, betting the hedge-fund manager will bring a Wall Street mindset to the role.
The S&P 500 rose 0.3%. The Nasdaq 100 added 0.1%. The yield on 10-year Treasuries declined 13 basis points to 4.27%.
While the S&P 500 might be a long way away from fumbling a strong year, don’t get too optimistic about a strong, smooth finish to the year, according to Callie Cox at Ritholtz Wealth Management.
“Yields show that expectations have moved a lot over the past two months, yet we haven’t seen any sustained, clear momentum in economic data,” Cox said. “December could be a reality check for people convinced that the economy is firing on all cylinders again.”
US inflation figures this week that are seen showing stubborn price pressures will reinforce the Federal Reserve’s cautionary posture toward future interest-rate cuts.
