Stock market loses steam after jobs report; Apple sinks on outlook

Stocks are trading lower Friday, erasing an early rally that saw the Dow Jones Industrial Average surge nearly 200 points, as stronger-than expected jobs report reaffirmed the consensus that the Federal Reserve will again raise interest rates soon.

Expectations for a near-term resolution to the continuing U.S.-China trade war were dashed after several high-level government officials, including economic adviser to the president Larry Kudlow, rejected speculation of an imminent deal.

How are benchmarks faring?

The Dow Jones Industrial Average DJIA, -0.93% lost 197 points, or 0.8%, to 25,183, the S&P 500 index SPX, -1.03% fell 28 points, or 1.1%, to 2,711, while the Nasdaq Composite Index COMP, -1.32%  declined 99 points, or 1.3%, to 7,335.

What’s driving the market?

The U.S. and China are a long way from reaching a trade deal, according to one senior Trump administration official.

Kudlow, during an interview with CNBC, also stated that the president didn’t request the drafting of trade accord between the U.S. and China as reported by Bloomberg.

On Thursday, President Donald Trump tweeted that he had a “long and very good conversation” with Chinese President Xi Jinping. The phone conversations come ahead of a late-November meeting that is anticipated to take place on the sidelines of a G-20 summit of world leaders, where the pair could potentially iron out differences.

Opinion: On the economy and rate hikes, the Fed looks lost in the stars

On the data front, the U.S. economy added 250,000 new jobs in October, beating economists’ expectations of 202,000. The unemployment rate remained flat at 3.7%, while the report showed year-over-year wage gains rising to 3.1%, slightly above the consensus estimate of 3%.

Stocks initially reacted well to the strong numbers but reversed direction as worries about tightening liquidity in the wake of a hawkish Fed seeped into

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