Stocks were poised to snap a three-day winning streak Friday, turning lower after expectations for a near-term resolution to the protracted U.S.-China trade spat were dashed after several high-level government officials rejected speculation of an imminent deal.
How are benchmarks faring?
The Dow Jones Industrial Average DJIA, -0.66% lost 285 points, or 1.1%, to 25,095, the S&P 500 index SPX, -0.84% fell 33 points, or 1.2%, to 2,706, while the Nasdaq Composite Index COMP, -1.17% declined 117 points, or 1.6%, to 7,316.
What’s driving the market?
The U.S. and China are a long way from reaching a trade deal, according to Larry Kudlow, President Donald Trump’s top economic adviser. 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.
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 market.
The U.S. trade deficit rose 1.3% in September to a seven-month high as imports hit a record.
Which stocks are in focus?
Apple Inc. AAPL, -6.83% shares sank 7.3% after