Stocks Ended Lower with Tariff Deadline in Focus

U.S. stocks ended lower on Monday as investors kept an eye on trade negotiations ahead of Sunday’s tariff deadline and policy updates from global central banks. The Dow Jones Industrial Average retreated 105.46 points, or 0.38%, to 27,909.60. The S&P 500 lost 9.95 points, or 0.38%, to 3,135.96. The Nasdaq Composite shed 34.70 points, or 0.40%, to 8,621.83.

Oil futures fell on Monday, as traders weighed expectations for energy demand. West Texas Intermediate crude for January delivery fell 18 cents, or 0.3%, to settle at $59.02 a barrel. February Brent crude shed 14 cents, or 0.2%, to $64.25 a barrel.

Another round of tariffs is set to go into effect Sunday if the U.S. and China cannot agree on terms for a “phase one” trade deal. While the White House says it remains optimistic on getting a preliminary deal done, if none is reached before the deadline, approximately $165 billion worth of Chinese imports will be slapped with 15% tariffs.

In addition, investors will turn their attention to the Federal Reserve Wednesday when the central bank concludes its last policy-setting meeting of the year. After cutting interest rates three consecutive times this year, economists broadly expect the Fed to hold rates steady.