US Stocks Fall 3rd Straight Day

Pressure has been building on both sides to complete what Trump has called a limited “Phase 1” deal before the new tariffs on Chinese goods kick in Dec. 15.

“We’re less than two weeks away from new tariffs that will be implemented on a bunch of consumer goods that have never had tariffs on them, and I think that’s when the consumer really starts to feel the pain,” Frederick said.

Wall Street is also weighing the potential for an expanded series of trade disputes. On Tuesday, Trump proposed tariffs on $2.4 billion in French products in retaliation for a tax on global tech giants including Google, Amazon and Facebook. That follows a threat Monday to raise tariffs on steel and aluminum from Argentina and Brazil.

The lack of a trade deal before the year ends could mean the market is in for a turnaround from a strong, record-setting November. The S&P 500 had its best month since June with a 3.4% gain because of cooling trade tensions and optimism that a resolution to the dispute was near.

Two days of deflated hopes has already sent the S&P 500 about 1.5% lower and the tech-heavy Nasdaq has slipped 1.7%.

December is a typically solid month for the stock market, with the S&P 500 making gains regularly since the last recession ended in 2009. Last year, though, fears about a recession and rising interest rates hurt the major indexes.

Technology stocks led the losses Tuesday. The sector is highly sensitive to twists in the trade dispute because many of the companies rely on China for sales and supply chains. Apple slumped 1.8% and Intel fell 2.8%.

Bank stocks also suffered heavy losses as investors headed for the safety of bonds and pushed yields lower. Banks rely on higher bond yields to charge

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