The U.S. stock market declined slightly during Monday trading because rising oil prices combined with manufacturing sector weakness affected investor confidence.
The S&P 500 declined 0.3% during midday trading as the Dow Jones Industrial Average dropped 236 points which represents a 0.6% decrease. The Nasdaq composite showed a minimal decline of less than 0.1%. The market experienced declines after manufacturing activity in the United States decreased more than economists predicted during May.
The Institute for Supply Management survey revealed manufacturing sector slowdown through decreased new orders and production while suppliers expressed ongoing concerns about tariffs and supply chain problems. A transportation equipment supplier explained how the current administration’s shifting trade policies created havoc for suppliers to respond effectively while maintaining profitability.
The computer and electronics industry executive at ISM described how tariffs create major problems for businesses while many companies avoid taking new inventory risks.
The White House promised that short-term difficulties would lead to long-term advantages from President Trump’s tariffs but markets continue to doubt this prediction.
