A woman walks past an electronic board showing Hong Kong share index outside a local bank in Hong Kong, Monday, April 15, 2019. Asian markets were broadly higher Monday on signs that the U.S. and China were closing in on a trade deal after months of negotiations. Vincent Yu AP PhotoNEW YORK
U.S. stock indexes pulled back in Monday morning trading, and the S&P 500 was on track for just its third loss in the last three weeks, as falling bank stocks weighed on the market.
Goldman Sachs dropped to one of the largest losses in the S&P 500 index after saying it’s off to a “muted start to the year,” though its earnings for the first quarter still beat analysts’ expectations. Citigroup also fell following its report, as banks lead off this quarter’s earnings season.
Expectations are low for the market in general, and analysts are expecting S&P 500 companies in upcoming weeks to report the first drop in earnings in nearly three years.
Still, stocks have enjoyed a hot start to the year after the Federal Reserve said it may not raise interest rates at all in 2019. The S&P 500 is just 1.2% below its record set in September, and other indexes are also close to their highs.
Optimism has grown that the U.S. and China can resolve their trade dispute. U.S. Treasury Secretary Steven Mnuchin said Saturday that the world’s two largest economies were moving closer to an agreement. And pessimism about the economy’s prospects has eased a bit.
Treasury yields, which tend to move in sync with expectations for the economy, have generally risen in recent weeks.
KEEPING SCORE: The S&P 500 was down 0.3%, as of 10:45 a.m. Eastern time. It flipped from a small gain of 0.1% at the open to