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Stocks - Wall Street Heads Lower as Hopes for U.S.-China G20 Trade Deal Dashed

Published 11/02/2018, 11:08 AM
Updated 11/02/2018, 11:18 AM
© Reuters.  Trump doesn't expect to reach deal with China at G-20; U.S. stocks turn lower

Investing.com - Despite an open in positive territory, Wall Street turned lower in midmorning trade as a slew of reports hit the wire that a trade agreement between the U.S. and China wasn’t imminent.

At 11:05 AM ET (14:05 GMT), the Dow Jones fell 83 points, or 0.33% to 25,242.0 points, the S&P 500 lost 14 points, or 0.50%, to 2,724.24 while the Nasdaq Composite traded down 115 points, or 1.63%.

U.S. President Donald Trump’s tweeted on Thursday that he had a “long and very good conversation” with Chinese President Xi Jinping with a “a heavy emphasis on trade”.

“Those discussions are moving along nicely with meetings being scheduled at the G-20 in Argentina,” he said.

However, the Washington Times reported on Friday that Trump told the paper that he did not expect to reach a deal with China at the G-20.

U.S. stock indices turned negative as the report surfaced, with Nasdaq leading the losses.

Tech stocks were dragged lower by a disappointing guidance from Apple (NASDAQ:AAPL). Shares tumbled 5.83%, leading decliners on the Dow.

A solid jobs report limited losses as traders learned that the U.S. economy produced 250,000 jobs in October.

However, an increase in annual average hourly earnings to 3.1% may have spooked investors as the data gave the Federal Reserve more ammunition to follow through on its plan for gradual rate hikes.

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