Major US stock indexes finished trading in the red

Major US stock indices declined moderately as investors weighed in on recent events surrounding the trade war between Washington and Beijing.

Comments by officials of the two largest economies in the world on Monday signaled a potential rapprochement after escalating trade tensions over the weekend. Following the G7 summit in the French city of Biarritz on Monday, US President Donald Trump predicted a deal with China, citing economic pressure on Beijing, while China called for a resolution of the current dispute.

However, Trump’s statements on the G7 that the Chinese representatives called the U.S. Department of Commerce and asked to return to the dialogue were questioned by the Global Times chief editor, who told Twitter that, as he knew, the negotiators on both sides did not communicate by telephone. The Chinese Foreign Ministry has also confirmed that it has not received a single trade call from the United States recently.

Market participants also evaluated macroeconomic reports. A S & P / Case-Shiller report showed that the home price index, which tracks home prices in 20 US metropolitan areas, rose 2.1% in June year-on-year after rising 2.4% in May. It was the smallest annual increase in housing prices since August 2012. Economists forecast a 2.4% price increase.

The Conference Board reported that the consumer confidence index fell slightly in August after it recorded a strong increase in July. The index now stands at 135.1 (1985 = 100), compared with 135.8 in July. Analysts had expected the index to fall to 129.5. The current situation index, based on consumers' assessment of the current business and labor market conditions, increased from 170.9 to 177.2, while the expectations index, based on short-term consumer forecasts regarding income, business and labor market conditions, decreased from 112.4 to 107.0.

Most of the DOW components completed trading in the red (19 of 30). The biggest gainers were Johnson & Johnson (JNJ, + 1.75%). Outsider were shares of UnitedHealth Group Incorporated (UNH, -3.64%).

All S&P sectors recorded a decline. The conglomerate sector showed the largest drop (-1.1%).

At the time of closing:

Dow 25,777.90 -120.93 -0.47%

S&P 500 2,869.16 -9.22  -0.32%

Nasdaq 100 7,826.95 -26.79  -0.34%