Stocks give back gains as China trade tensions back in focus.
The U.S. stock market drifted between gains and losses on Tuesday, as investors shifted their focus back to U.S.-China trade negotiations.
After rising more than 200 points, the Dow Jones Industrial Average (NYSEARCA:DIA) reversed course to settle down 14.17 points, or 0.1%, at 26,048.51.
The broad S&P 500 Index (NYSEARCA:SPY) pared losses in the final hour, flat-lining at 2,885.72. Industrials and utilities companies were among the biggest decliners. On the opposite side of the ledger, shares of energy and communication services companies reported strong gains.
Meanwhile, the technology-focused Nasdaq Composite Index (NYSEARCA:QQQ) also pared losses to finish flat at 7,822.57.
A measure of implied volatility known as the CBOE VIX (NYSEARCA:VXX) rose slightly on Tuesday but remained well below the historic average. The so-called “fear index” climbed 0.9% to 16.08 on a scale of 1-100 where 20-25 represents the historic average.
In economic data, U.S. producer prices weakened more than expected in May, the Department of Labor reported Tuesday. The producer price index rose 0.1% in May and 1.8% annually, official data showed. Analysts in a median estimate called for producer prices to rise 2% annually.
There has been no movement in U.S.-China trade talks for over a month. The stalemate all but confirms that President Trump and Chinese counterpart Xi Jinping will be in no position to sign a deal in time for the upcoming G20 summit in Osaka, Japan.
The Final Word: The U.S.-China trade war is making people nervous again. With no resolution in sight, it could be only a matter of time before the U.S. economy experiences some backlash. The Atlanta Federal Reserve recently slashed its forecast for second-quarter GDP to reflect growth of just 1.4% annually.