Stocks retreated Wednesday, threatening to snap a five-day winning streak for the S&P 500, after President Donald Trump insisted China commit real, structural reforms before a trade deal can be reached.
He also urged Congress to pass infrastructure legislation, but provided little detail, while also pressing his demand for funding for a southern border wall.
What are major indexes doing?
The Dow Jones Industrial Average DJIA, +0.01% fell 4 points, or less than 0.1%, to 25,406, while the S&P 500 index SPX, -0.17% retreated 3.5 points, or 0.1%, to sit at 2,734. The Nasdaq Composite Index COMP, -0.30% fell 13 points, or 0.2%, at 7,389.
What’s driving the market?
In his State of the Union address Tuesday night, Trump said he had “great respect” for Chinese President Xi Jinping, adding that the two leaders are working on a new trade deal, while insisting that any agreement “include real, structural change to end unfair trade practices, reduce our chronic trade deficit, and protect American jobs.”
In an interview with CNBC Wednesday morning, Treasury Secretary Steven Mnuchin confirmed that he and U.S. trade representative Robert Lighthizer and Treasury Secretary Steven Mnuchin will travel to Beijing next week to continue negotiations over the continuing trade dispute, as the administration-imposed March 1 deadline for a deal approaches, after which the president has threatened to expand tariffs on Chinese imports.
Mnuchin said “there is still a lot of work to do” before a deal can be reached, but also stressed that the two parties have made “a lot of progress” in recent days, particularly over enforcement mechanisms to ensure that China adheres to the letter of any future deal.
The president also vowed to build a proposed border wall,