U.S. equities and stock exchange traded funds were little changed Tuesday as traders remained cautious over political risks, notably President Donald Trump’s ability to deliver on policy promises.
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 down down 0.1% Tuesday.
U.S. markets remained relatively flat even after Trump hinted at a U.S. infrastructure bill that could top $1 trillion and said his administration was working on a major “haircut” to the Dodd-Frank banking regulation, reviving talks around his campaign promises, reports Yashaswini Swamynathan for Reuters.
Further fueling the cautious sentiment gripping the markets, Trump is scheduled to meet Chinese President Xi Jinping, which the U.S. president has already anticipated “will be a very difficult one,” according to Trump’s recent tweet. Trump is expected to leverage the trade talks to secure China’s aid in handling North Korea at the upcoming Thursday through Friday meeting.