Wall Street fell sharply to start the week.Credit:AP
"It's a quiet day as investors recover from Thanksgiving. As investors settle back at their desks,"said David Carter,chief investment officer at Lenox Wealth Advisors in New York.
A report from the Institute for Supply Management (ISM) showed US manufacturing activity contracted in November for the fourth consecutive month,fueling worries that the longest period of economic expansion in US history could be growing short-winded.
Earlier,President Donald Trump tweeted that he would restore tariffs on steel imported from Brazil and Argentina,boosting shares of US steel makers US Steel Corp and AK Steel Holding Corp by 3.5 per cent and 5.6 per cent,respectively.
Still,it was the latest sign that the hydra-headed trade disputes between the United States and its trading partners will continue to rattle markets and hinder global economic growth.
The news comes on the heels of recent Wall Street highs,driven to new records last week on hopes of an imminent"phase one"trade deal between the US and China.
Indeed,a senior adviser to Trump said on Monday it was still possible that a deal with China could be reached by year-end.
"Markets have had a great run this year and expectations are already high that a trade deal gets done,"Carter added."Any reversal here is likely to negatively impact markets,which is likely what we're seeing today."