Bonds & Stocks
US stocks fluctuated as a deepening rout in chipmakers was offset by investors rotating into sectors that have posted among the strongest earnings so far this season. Bonds climbed as oil fell. S&P 500 contracts swung between gains and losses. Nasdaq 100 futures slid 0.6%, with the index set for a five-day run of losses for only the second time this year.
Economy
Treasuries head for their best win streak in a month, buoyed by a sharp retreat in oil prices on optimism that talks between the US and Iran will lead to the resumption of tanker traffic around the Arabian Peninsula. US 10-year yields fell for a third day, down three basis points to 4.62%, reducing their premium over two-year peers — which are among the most sensitive to monetary-policy — to the lowest in almost four weeks.
World
China set a ceiling on new US tariffs. The Chinese Commerce Ministry said Monday that the US had committed during trade talks to cap so called replacement tariffs at 20%. Beijing disclosed the purported agreement after Washington imposed a new 12.5% levy on Chinese goods to replace charges struck down by the Supreme Court, effectively setting a limit on further increases.