The S&P 500 and Dow Jones indexes had closed at all-time highs on Thursday after officials said both countries had agreed to roll back tariffs on each others’ goods in a “phase one” trade deal if it is completed.
But Trump said on Friday he had not agreed to roll back the tariffs, although Beijing would like him to do so. The news sent all three major U.S. stock indexes sharply lower, but they quickly recovered to trade near flat.
“Investors somewhere knew that there was an existing issue regarding the rollback of these tariffs and with record highs being set, a little consolidation is to be expected,” said Michael Geraghty, capital market strategist at Cornerstone Capital Group in New York.
Seven of the 11 major S&P 500 sectors were trading lower, with the energy sector shedding 1.51% as oil prices fell. Trade-sensitive technology stocks dropped 0.11%.
Still, the S&P 500 is on track for its best year since 2013, while the Nasdaq and blue-chip Dow are eyeing yearly gains after dropping in 2018, partly propelled by a rosy third-quarter earnings season.
Of the 430 S&P 500 companies that have reported results so far, nearly three quarters have beaten profit estimates, according to IBES data from Refinitiv. Those numbers, to some extent, reflect significantly lowered analysts’ forecasts.
Walt Disney Co gained 3.96% as its popular theme parks and a remake of “The Lion King” lifted earnings, and the company also spent less than it had projected on its online streaming service, Disney+.
At 10:32 a.m. ET the Dow Jones Industrial Average was down 52.84 points, or 0.19%, at 27,621.96 and the S&P 500 was down 2.47 points, or 0.08%, at 3,082.71. The