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U.S. stocks fell on disappointing factory data and after President Donald Trump’s move on tariffs rekindled concern over global trade risks. Bonds dropped.

The S&P 500 Index headed toward its biggest decline in almost two months as a gauge of U.S. manufacturing contracted against a backdrop of weaker orders and subdued production. Equities also slid after Trump said he’s restoring tariffs on steel and aluminum from Argentina and Brazil.

The latest tariff development outweighed bets that the world’s two largest economies were close to signing the first part of a trade deal. Meantime, the unexpected drop in U.S. manufacturing showed the sector lacks momentum amid a still-simmering trade war.

“It’s all part of the same narrative, right?” Tom Porcelli, chief U.S. economist at RBC Capital Markets, told Bloomberg TV. “There’s a narrative problem in the manufacturing space and the narrative problem obviously stems from trade. Until you actually can sign this deal, I think that manufacturing will remain under pressure.”

Elsewhere, oil rebounded from the biggest weekly loss since October on speculation that OPEC+ could defy expectations by deepening its production cuts.

Here are some key events coming up this week:

  • Saudi Aramco’s initial public offering is scheduled to be priced on Thursday.
  • Friday brings the U.S. jobs report, where estimates are for non-farm payrolls to rise by 190,000 in November.

Here are some of the main moves in markets:

Stocks

  • The S&P 500 slid 0.7% to 3,119.45 as of 10:31 a.m. New York time.
  • The Stoxx Europe 600 Index sank 1.3%.
  • The MSCI Asia Pacific Index rose 0.5%. Currencies The Bloomberg Dollar Spot Index fell 0.2%.
  • The euro climbed 0.5% to $1.1072.
  • The Japanese yen strengthened 0.2% to 109.26 per dollar.

Bonds

  • The yield on 10-year Treasuries jumped six basis points to 1.84%.
  • Germany’s 10-year yield jumped nine basis points to -0.27%.
  • Britain’s 10-year yield jumped six basis points to 0.752%.

Commodities

  • The Bloomberg Commodity Index gained 0.3%.
  • West Texas Intermediate crude rose 1.7% to $56.11 a barrel.
  • Gold fell 0.3% to $1,468.60 an ounce.

With assistance from Nancy Moran, Adam Haigh, Yakob Peterseil, Sam Potter and Sarah Ponczek.

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