U.S. stocks and ETFs soured in mid-day trading Monday, erasing early morning gains as anxious investors watch the direction of the trade talks and the ongoing growth of the economy.
On Monday, the Invesco QQQ Trust (NASDAQ: QQQ) was down 0.4%, SPDR Dow Jones Industrial Average ETF (NYSEArca: DIA) fell 1.2% and SPDR S&P 500 ETF (NYSEArca: SPY) slipped 1.2%, with the Dow Jones Industrial Average plummeting more than 300 points after gaining more than 100 points in the early morning session.
The U.S. and China were in the final stretch of completing a trade deal after months of bickering with Beijing offering lower tariffs and other restrictions on U.S. goods while Washington considered removing most sanctions since last year, the Wall Street Journal reports.
“There’s a desire from investors for a more concrete trade pact,” Eric Freedman, chief investment officer at U.S. Bank Wealth Management, told the WSJ. “Will the tariffs against China be phased out, or will they be dropped cold turkey? That’s what’s really holding back progress in the stock market.”
Some investors may have just took an opportunity to lock in gains and sell ahead of any concrete evidence in a final trade deal.