The Dow Jones Industrial Average fell Monday, along with the S&P 500 and Nasdaq, amid heightened U.S.-China tensions. Manufacturing and construction data were weaker than expected.
Meanwhile, Palantir Technologies and Tesla were early movers near buy points. Nucor and MP Materials jumped on tariff news while Blueprint Medicines spiked on a takeover deal. (Click here for the latest updates on today's stock market activity.)
Among the major indexes, the Dow Jones declined 0.65%. The S&P 500 fell 0.45%. The Nasdaq composite retreated 0.3%.
The 10-year Treasury yield edged up to 4.44% after falling nine basis points last week to 4.41%. Gold futures rose more than 2%. Crude oil prices jumped 3% after declining 1.2% last week to $60.79 a barrel.
OPEC+ said Saturday it would hike production for a third straight month, but traders are focusing on Ukraine's big attack on Russian air bases.
At 10 a.m. ET, The ISM manufacturing index fell 0.2 point to 48.5 in May vs. forecasts for a slight uptick to 49.1. Readings below 50 signal contraction. April construction spending sank 0.4% vs. views for a 0.4% gain, while March was revised down to 0.8% decline.
U.S.-China Trade
Early Monday, Beijing accused Washington of breaking the U.S.-China trade truce, citing stepped-up chip technology curbs and saying it'll revoke visas for Chinese students. It denied President Donald Trump's claim Friday that Beijing had "totally violated" the U.S.-China trade truce.
Trump didn't provide specifics, but China's slow approvals for rare earth exports reportedly is the main issue. On May 12, the U.S. and China agreed to slash tariffs for 90 days.
MP Materials, the only major U.S. producer of rare earth minerals and magnets, fell 4% Monday after jumping before the open. MP stock surged 10.2% on Friday.
Meanwhile, Trump said late Friday he would double tariffs on imported steel and aluminum to 50% on June 4. That lifted some steel and aluminum stocks, as Nucor ran up 11% and Century Aluminum 25%. General Motors and Ford Motor fell more than 4% Monday.
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The Dow Jones Industrial Average climbed 1.6% in last week's stock market trading, just below its 200-day line. The S&P 500 index advanced 1.9%. The Nasdaq composite popped 2%, around three-month highs. The small-cap Russell 2000 rose 1.3%.
Outside Dow Jones: Palantir, Tesla Stock Fall
Palantir stock fell more than 1%, back into a buy zone. Shares popped nearly 8% to 131.78 on Friday in heavy volume, moving above a 125.25 cup-with-handle buy point. Palantir had tested that entry for several sessions.
The New York Times reported Friday that the Trump administration will tap the data analytics firm to help the federal government share data across agencies.
Tesla stock sank more than 2%. Shares rose 2.1% last week but fell back 3.3% on Friday, undercutting a 354.99 aggressive entry. The steel and aluminum tariff hike could be a factor in Monday's action.
Tesla Chief Executive Elon Musk officially ended his work with the White House on Friday. Tesla's China rivals BYD, XPeng, Nio and more reported May deliveries on Sunday. Tesla China sales have struggled, adding to global demand concerns.
But the real focus for Tesla investors is the limited robotaxi launch set to take place in June, reportedly on June 12.
Tesla stock is on IBD Leaderboard. Palantir stock is on the IBD 50, IBD Big Cap 20 and IBD Sector Leaders.
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Big Pharma Firms Make Deals
Sanofi will buy Blueprint Medicines for $9.1 billion, or $129 a share cash. Blueprint shareholders also will receive one non-tradeable contingent value right with potential milestone payments of $2 and $4.
Blueprint Medicines stock shot up 26% to nearly 128. Sanofi stock edged lower.
Bristol-Myers Squibb will pay $1.5 billion upfront to BioNTech with up to $2 billion in milestone payments for the right to develop and commercialize cancer drug BNT327.
Bristol-Myers stock tilted lower. BioNTech stock soared 17%.
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