Dow, S&P 500 snap historic run of gains as tariff risks return, Fed decision looms

US stocks retreated from a historic run of gains on Monday as President Trump's new tariff threat revived trade war worries in the wait for a Federal Reserve policy decision.

The S&P 500 slipped roughly 0.6%, snapping its longest winning streak in over 20 years. The Dow Jones Industrial Average  slipped almost 0.3%, also notching its first losing session in the last 10 tries. The tech-heavy Nasdaq Composite  dropped nearly 0.8%.

The US dollar  also lost ground as Wall Street gauges whether recent confidence that Trump has moved to a dealmaking phase is misplaced.

Investors had been riding a wave of optimism, fueled largely by early indications that the US and China are inching toward the negotiating table for discussions on tariffs. Chinese officials have signaled reopening trade talks with Washington, though no start to negotiations appears imminent.

But Trump said over the weekend that he has no plans to speak to his Chinese counterpart, President Xi, this week, even as he said he wants a "fair deal" with the country.

In a social media post on Sunday, Trump opened a new front in his trade war, saying movies produced outside the US will face a 100% tariff. He said efforts to start the process will start immediately, though he offered little detail on the duties.