After a robust run-up above the recent highs of the summer, markets are pulling back some again today as investors are once again on edge over trade deal delays.
Stocks slumped overnight and on Wednesday after a report from a key Trump official noted that President Donald Trump and Chinese leader Xi Jinping likely wouldn’t meet to sign a trade deal until December, disappointing news for a market that has rallied considerably on promises of a trade deal, and potential end to the protracted trade war with China.
The Dow Jones Industrial Average dropped about 43 points, or 0.2%, while the S&P 500 was off about 0.1%. The Nasdaq Composite fell 0.5% as big tech companies, including Amazon, Microsoft, and Facebook, all showed weakness. This drop came after the Dow Jones hit another record close on Tuesday.
Dozens of venues have been suggested for the trade meeting, which had initially been scheduled to take place on the sidelines of a now-abrogated mid-November summit of Asia-Pacific leaders in Chile, the official said.
One Chinese official said Beijing was considering the possibility of a meeting in Greece, where Xi is set to visit this Sunday.
When Will The Deal Be Complete
Part of the concern for investors is that the more this deal is postponed, the less likely it is to be completed say experts.
“It’s longer than they wanted, and the longer it stretches out, the greater the risk it blows up,” said Art Cashin, director operations at UBS.