- The stock market traded flat on Tuesday.
- The top US & Chinese trade negotiators spoke this morning about the phase one agreement.
- Investors aren’t convinced those talks will produce anything of consequence.
The Dow traded flat on Tuesday, struggling to grind higher after joining the S&P 500 and Nasdaq in record territory one day earlier.
Investors digested more positive news on the trade war front, but today’s market paralysis suggests that investors believe the hype is fundamentally vacuous.
Dow Struggles After Joining S&P 500 in Record Territory
The US stock market’s three major indices ranged near record levels this morning.
After closing at a fresh high on Monday, the Dow Jones Industrial Average sought to extend its rally. But shortly after the open, the Dow had lost 13.27 points or 0.05% to nudge down to 28,053.2.
The S&P 500 and Nasdaq also secured new all-time highs on Nov. 25, and they clung to those levels on Tuesday. The S&P 500 dipped 2.05 points or 0.07% to 3,131.59. The Nasdaq declined 2.77 points or 0.03% to 8,629.72.
Stock Market Doesn’t Take the Trade War Bait
Though awash in China-dependant stocks, the Dow Jones ignored the latest indication that the US and China remain committed to prioritizing a “phase one” trade agreement.
Earlier this morning, Chinese Vice Premier Liu He spoke with US Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin. According to China’s Ministry of Commerce, the phone call went well, and the two sides “reached consensus on how to solve related problems.”
“Both sides discussed resolving core issues of common concern, reached consensus on how to resolve related problems (and) agreed to stay in contact over remaining issues for a phase one agreement,” the…