Stocks Fall as Tariff Angst Spurs Gains in Bonds: Markets Wrap

Wall Street’s risk-off mode prevailed in the run-up to the Federal Reserve decision, with stocks falling and bonds rising as President Donald Trump’s tariff remarks failed to ease worries that his trade war will cause economic damage.

After almost wiping out losses, the S&P 500 closed with a drop of nearly 1%. Trump said he would prescribe tariff levels and concessions for partners looking to avoid higher duties, appearing to move away from the idea that he would engage in back-and-forth negotiations. Trade jitters spurred gains in Treasuries, which also climbed after a solid $42 billion sale of 10-year bonds.