U.S. equity benchmarks traded lower on Monday, with the S&P 500 and the Dow snapping their multi-day win streaks, as President Donald Trump prepared to announce additional tariffs on Chinese imports while China hinted at a new round of retaliation. Fears about intensifying disputes between China and the U.S. rattled investors. Trade tensions are ongoing with Trump planning to impose a 10% tariff on $200 billion (40% of all Chinese imports) and possibly increasing the percentage to 25% by the end of the year should there be no deal. Last week, the Chinese had already reiterated that they will not enter into any trade talks should Trump go ahead with the tariffs, so it is unlikely that senior official Liu He will be booking his flight to Washington at all after the “fresh” threats.
The Dow saw a downward move by about 92 points during Monday's session. After this bearish move, the index may reverse a little at the beginning of today's session making its move towards the 26087 resistance. Thereafter the Dow will likely continue bearishly in the direction of the 25968 area. During today's session, the index seems to be a strong sell.
Support: 25986 25881
Resistance: 26087 26171