Stocks drift lower as investors begin to doubt U.S.-China trade deal.
The U.S. stock market traded lower on Monday after Chinese state media poured cold water on hopes that Washington and Beijing were moving towards a comprehensive trade agreement.
The Dow Jones Industrial Average (NYSEARCA:DIA) tumbled 30.38 points, or 0.1%, to 26,786.21
The broad S&P 500 Index (NYSEARCA:SPY) drifted 0.1% lower to settle at 2,966.20. Losses were mainly concentrated in materials and utilities.
Meanwhile, the technology-laden Nasdaq Composite Index (NYSEARCA:QQQ) closed down 0.1% at 8,048.65.
A measure of 30-day volatility known as the CBOE VIX (NYSEARCA:VXX) drifted lower at the start of the week. VIX bottomed at 14.72 on a scale of 1-100 where 20 represents the historic average. The so-called “fear index” would eventually settle down 4.2% at 14.92.
As CNBC reported Monday, China wants to have more trade talks before signing what President Trump characterized as a “very substantial phase one deal.”
Over the weekend, an op-ed from the China Daily said: “While the negotiations do appear to have produced a fundamental understanding on the key issues and the broader benefits of friendly relations, the Champagne should probably be kept on ice, at least until the two presidents put pen to paper.”
Additional talks between the two superpowers hasn’t been planned yet.
The Final Word: Monday was a quiet session on Wall Street, as investors continued to assess the merits of President Trump’s phase one trade deal. Activity will likely increase later in the week as attention shifts to corporate earnings and economic data.