U.S. stock indexes Tuesday late-afternoon were losing steam and turning negative on the heels of a report that tariffs on Chinese goods would remain in place until after the 2020 presidential election. Bloomberg News reported that any move to reduce Chinese tariffs will hinge on the second-largest economy’s “compliance with the terms of a phase-one trade accord, wrote Bloomberg News, citing people familiar with the matter. The Dow Jones Industrial Average DJIA, +0.15% was off up 58 points, or 0.2%, at 28,970, but had hit an intraday peak at 29,054 and a low at 28,872, while the S&P 500 index SPX, -0.11% was down 0.3% at 3,286 and the Nasdaq Composite Index COMP, -0.15% was off 0.1% at 9,267. The report on Sino-American trade relations comes as delegates from Beijing have traveled to Washington to sign a preliminary trade pact with the U.S., potentially paving the way for a detente between the world’s largest economies, which has been a major headwind for the markets. Market participants make the case that despite the news, there had been no previous details about an elimination of tariffs as a part of a phase-one agreement.
Dow loses perch at 29,000 and briefly turns negative as report says China tariffs will remain until after 2020 election
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