Stocks fall, dollar firms with US trade talks in focus

Major stock indexes eased while the dollar strengthened against major currencies on Monday as investors awaited the next announcements in the White House's trade negotiations.

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Longer-dated US Treasury yields edged higher. The United States will make several trade announcements in the next 48 hours, Treasury Secretary Scott Bessent said on Monday, with a deadline set for Wednesday to get trade deals done.

The higher rates are scheduled to take effect on August 1.

"We're down (in stocks) after the long weekend, and it’s somewhat of a critical week in terms of the tariffs,” said Peter Cardillo, chief market economist at Spartan Capital Securities in New York.

"The prospect of what may or may not happen with the trade deals... is causing investors to be somewhat cautious." Tariffs are expected to increase prices and to slow down growth, though uncertainty over the ultimate policies may be a bigger drag as it leads businesses to postpone decisions.

S&P 500 companies are soon expected to begin reporting results on the second quarter.

US President Donald Trump announced in April a 10% base tariff rate on most countries and higher “reciprocal” rates ranging up to 50%, with an original deadline of this Wednesday.