Uncertainy drives stocks to decline

U.S. stocks finished the day lower as uncertainty over the prospect of tariffs undid some of the market’s recent job-driven advances and investors looked forward to Tuesday’s U.S. inflation report. Treasuries increased, while the dollar and most commodities fell.

The S&P 500 Index rallied 3.5 percent last week, with the biggest gains coming after a labor market report underscored economic strength that gave fresh impetus to the nineyear-old bull market in global equities. But President Donald Trump put markets on edge after he raised the prospect of a full-fledged trade war. With data due from China this week as well as readings on U.S. inflation and retail sales, investors will be looking for more reasons to keep the party going.

“With earnings season wrapped up, tax reform launched, and steel and aluminum tariffs to take effect soon, investors will have plenty to ponder,” John Stoltzfus, the chief investment strategist of Oppenheimer & Co., wrote in a note to clients Monday. “We believe patience, fortitude and an eye for opportunities that could present themselves as interest rates work through the process of normalization, trade negotiations garner attention and equity markets respond to it all, could prove rewarding.”

The Dow Jones Industrial Average and the S&P 500 finished lower Monday, while the tech-heavy Nasdaq 100 kept its head above water. The Stoxx Europe 600 Index is on its longest winning streak since October, while gauges from Tokyo to Sydney jumped.

Bitcoin fell for the fifth straight weekday and West Texas crude moved lower after last week’s advance. Emerging-market stocks surged.