The stock market just can’t hold on today.
The S&P 500 was down 0.2%. The Nasdaq Composite dropped 0.3%. The Dow was up just 16 points, or flat, after trading up more than 200 points.
There wasn’t an obvious catalyst for the slide, though the major indexes all dropped while Bloomberg TV aired an interview with DoubleLine Capital CEO Jeffrey Gundlach. The bond-fund manager echoed recent comments from JPMorgan Chase CEO Jamie Dimon, arguing that a “reckoning is coming” for U.S. Treasuries.
Sevens Report Research’s Tom Essaye also told Barron’s that updates from President Donald Trump on where things stand on the U.S.’s trade pact with China weren’t particularly encouraging for investors that were betting on the “Trump Always Chickens Out” trade, or “TACO.”
“He basically is saying ‘We’re done here. We’re going to have 55% tariffs on Chinese goods going forward,’” Essaye says. “If the whole reason the market has rallied is Taco—well, that’s not Taco.”