U.S. equities and stock exchange traded funds weakened Monday as investors turned to safer gold bullion and U.S. Treasury plays in response to mounting political risks.
The S&P 500 Index, along with related funds including the SPDR S&P 500 ETF (NYSEArca: SPY), iShares Core S&P 500 ETF (NYSEArca: IVV) and Vanguard 500 Index (NYSEArca: VOO), were 0.3% lower Monday.
Meanwhile, gold added 0.9% to $1,232.0 per ounce and yields on benchmark 10-year Treasury notes dipped to 2.417% on safe-haven trading.
Weighing on risk assets, investors were on edge ahead of several impending European elections, along with ongoing concerns over what President Donald Trump will do next, reports Hilary Russ for Reuters.
“There is a sense of general uncertainty and I’m not sure if you can pin-point it to anything in particular,” Orlando Green, European fixed income strategist at Credit Agricole, told Reuters. “You could say markets are a bit edgy about the political scene in Europe, the political scene in the U.S. and there’s a bit of uncertainty about when the Fed will hike rates next.”