Stocks closed lower on Monday after President Donald Trump said an announcement on U.S.-China trade will be coming after the close. Steep losses in some of the biggest tech shares also pressured the broader market.
Trump said he has great respect for Chinese President Xi Jinping, but the U.S. deficit was too big. "We can't do that anymore," Trump said.
The comments come after director of the National Economic Council Larry Kudlow told CNBC's Becky Quick that Trump has "not been satisfied" with the trade talks with Beijing. "The president has suggested tariffs on a couple $100 billion" in Chinese goods, Kudlow said. "He has not been satisfied with the talks with China on this. My guess is that an announcement will be coming soon."
The Dow Jones Industrial Average fell 92.55 points to 26,062.12 as Apple and Boeing lagged, snapping a four-day winning streak. The Nasdaq Composite dropped 1.4 percent to close at 7,895.79 — notching its worst day since July 27 — as shares of Amazon, Apple and Micron fell. The S&P 500 pulled back 0.6 percent to 2,888.80, ending a five-day winning streak, with tech and consumer discretionary underperforming.
Apple shares fell 2.6 percent amid fears it could be caught in the middle of a U.S.-China trade war. China is one of Apple's biggest markets. The tech giant said earlier this month that tariffs on Chinese goods could hurt its business.