NEW YORK (Reuters) – Wall Street’s indexes and bond yields ended down but well above their session lows while oil futures settled higher as investors bet that U.S. President Donald Trump’s threats to raise tariffs on China would not materialize.
Trump tweeted on Sunday that the United States would raise tariffs on $200 billion worth of Chinese goods this week, causing investors to seek safety and flee from risky assets. On Monday, Trump sharply criticized China.
But as Monday’s session wore on, the initial shock from the threats appeared to wear off. U.S. Treasury yields pared some of their declines.
Oil futures reversed course to settle slightly higher after a volatile day as rising tensions between the United States and Iran helped buoy prices. The