US Stocks fell for a second week on uncertainties over US and China trade negotiations. The S&P 500 fell 2.2% and the Dow dropped 2.1% for the week. Internationally, Japan plunged 4.1% and Europe sank 3.4% for the week. The yield on the 10-year Treasury continued to trend down as investors added to safe haven positions. The yield fell to 2.41%.
China retaliated against US tariffs with plans to increase tariffs on $60 billion of US goods and the US said it would plan to raise tariffs to 25% on $300 billion worth of Chinese goods this summer.
Trump signed an executive order that would ban telecommunications equipment from “foreign adversaries.” The ban would directly impact China.
Retail sales fell 0.2% in April below expectations.
Factory output fell 0.5% in April, the third monthly decline in four months.
Data showed that retail sales, fixed asset investment and industrial production all cooled in China in April.
Germany grew at 0.4% in the first quarter.
The White House delayed a decision on auto parts and imported cars for 6 months. The US also reached a deal with Canada and Mexico to exempt them from steel and aluminum tariffs.
Consumer sentiment in the US in May rose to the highest level since 2004.