Wall Street Down for Second Day as Predictable Uncertainty Returns to Play

The second session in a row on the New York stock exchanges ended with declines in the main stock market indices. Investors are starting to to be concerned about the unusual customs policy of President Donald's team Trump.

The S&P500 index ended Tuesday down 0.77% and 5,606.91 points. The Nasdaq fell by 0.87%, reaching height of 17,689.66 points. Dow Jones fell by 0.95%, reaching a level of 40,829 points.

It was the second consecutive session of declines on Wall Street. Day earlier the S&P500 lost 0.64% and broke an impressive series of nine consecutive growth sessions . Such decisions may herald the end of the dynamic rebound, within which since the April low the S&P500 has grown by over 16% after falling by over 21% in March and early April.

There is talk in the market that uncertainty related to customs policy of the US administration. In Tuesday President Donald Trump said he would review the next two weeks potential trade deals and choose which ones to accept. Undisclosed Intergovernmental negotiations have been going on for almost a month now, but nothing has happened yet no official results came out of them.

These declarations were superimposed on a verbal skirmish between the new Canadian Prime Minister and ex-Goldmanite Mark Carney and Donald Trump. – Canada is not for sale, Carney said . "Time will tell. Never say that." never – the President of the United States retorted. Such an “exchange of pleasantries” does not bode well for easy negotiations between Washington and Ottawa.

They also reminded about the issues of international trade latest macroeconomic data. The US trade balance in March closed reached a record amount of -140.5 billion dollars, significantly exceeding the market consensus (-136.9 billion USD). The reason there was an absolutely record import (419 billion USD in a month), which since November presidential election increased by over 23%. In this way, American business prepared for trade wars by stocking up on imported goods in advance goods.

- The real wild card, the big wild card, is China. No I think that talks with the EU will be easy and that with Canada it will go smoothly, but China is a big player and they will certainly be a tough negotiator – noted Tim Ghriskey, portfolio managers at Ingalls & Snyder in New York quoted by Reuters agency.

But on Wednesday, the Trump team's accurate show may cover up a market soap opera in the form of a routine meeting of the Federal Committee Open Market. The US central bank will likely keep interest rates at unchanged level. But the key will be the rhetoric of Jerome Powell, who may reduce or increase the valuation of the chances of rate cuts in the future year. Futures markets are pricing in nearly 80% estimate the chances of a 25 bp rate cut by the July meeting FOMC inclusive.

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