The Dow Jones was unable to profit from the news of Donald Trump removing some tariffs on Chinese goods, as the president dashed hopes that he’d agree to a partial trade deal.
Meanwhile, Chinese trade negotiators canceled a visit with US farmers in Montana, spooking a stock market that was already pressured by more stringent sanctions on Iran.
Dow Jones Under Pressure as Nasdaq Wobbles
Despite strolling toward moderate gains during the morning session, the Dow Jones Industrial Average quickly slid into decline after Chinese negotiators decided to cut their visit to the United States short.
At last check, the Dow traded at 27,032.09 for a loss of 62.70 points or 0.23%. The DJIA had earlier declined as much as 150 points.
Dow Jones bulls appear incapable of pushing the index to fresh highs, and the S&P 500 was also under pressure on Friday.
However, the Nasdaq was comfortably the worst performer of the three, nosediving 0.60% as investors considered research demonstrating that IPOs are at their least profitable mark since the dotcom bubble in 1999.
Trump Spooks Stock Market With China Comments
The US-China trade war remains the most important fundamental for the Dow Jones, and an insult to Trump’s key farming voter base in Montana could reverse the positive direction in which talks appeared to be headed.
Elsewhere, President Trump was asked at a press conference with the Australian PM if he was content with China merely agreeing to purchase more agricultural goods. Trump made it clear that he desires a full-fledged trade deal, not a partial agreement.
Trump even claimed that he was not desperate for a deal before the 2020 election. This stands in stark contrast to many analysts forecasts, and it would likely be a negative for the Dow Jones and (especially the Nasdaq) if true.
Confusing the outlook even more for the Dow Jones, the Federal Reserve’s Eric Rosengren spoke on…