# U.S. Stocks Complete Third Straight Monthly Decline as Tariff Uncertainties Weigh on Markets

U.S. stock markets closed out April with their third consecutive monthly loss, extending a downward trend that began in February as investors grapple with mounting concerns over potential trade policy shifts.

The S&P 500 fell approximately 2.3% for the month, while the Dow Jones Industrial Average declined 1.8% and the Nasdaq Composite dropped 2.7%. This marks the longest monthly losing streak since the pandemic-induced selloff in early 2020.

Market analysts attribute the sustained weakness to growing uncertainty surrounding the administration's stance on tariff policies, particularly regarding imports from China and potential new measures affecting European goods. Several major corporations have warned that escalating trade tensions could disrupt supply chains and increase consumer prices.

"We're seeing investors take a more cautious approach until there's greater clarity on the trade front," explained Katherine Ross, chief market strategist at Capital Investment Advisors. "The lack of policy certainty is making it difficult for companies to plan ahead."

Technology and manufacturing sectors have been hit particularly hard, with companies heavily reliant on global supply chains experiencing the steepest declines. Semiconductor stocks were among the worst performers in April, with the Philadelphia Semiconductor Index down nearly 5% for the month.

Meanwhile, defensive sectors such as utilities and consumer staples showed relative resilience, underscoring the market's risk-averse sentiment. Gold prices reached new highs as investors sought safe-haven assets amid the uncertainty.

The Federal Reserve's upcoming meeting in May is now drawing additional attention, as policymakers will need to balance inflation concerns against potential economic headwinds from trade disruptions. While the central bank had previously signaled a potential rate cut later this year, futures markets now indicate diminished expectations for monetary easing in 2025.

Treasury yields have also reflected the changing economic outlook, with the 10-year yield climbing above 4.5% in late April, further pressuring equity valuations.

As May begins, market participants are closely monitoring upcoming trade policy announcements and first-quarter earnings reports for clues about how companies are navigating the uncertain environment.