U.S.-China trade concerns spark stock market’s slide
NEW YORK» Wall Street closed out a volatile week with losses Friday as investors worried that upcoming trade negotiations aimed at resolving the costly trade war between Washington and Beijing could be in trouble.
The selling, which erased modest early gains for the market, snapped a three-week win streak for the S&P 500. But the benchmark index is still up 2.2% for September.
The afternoon market slide came as investors reacted to published reports indicating Chinese officials canceled a planned trip to farms in Montana and Nebraska and would be returning to China. Representatives from the U.S. and China were engaging in preliminary discussions over the next two weeks to lay the groundwork for more formal negotiations next month.
Reports about the Chinese delegation came after President Donald Trump told reporters during a midday news conference that he wants a complete deal with China and won’t accept one that only addresses some of the differences between the nations. Trump also said he doesn’t feel he needs to get an agreement before next year’s election.
“This is why China has been reluctant to continue to negotiate with the Trump administration, because as soon as it looks like we’re moving toward some sort of constructive talks, there is a change in direction and it seems like a lot of head fakes,” said Ben Phillips, chief investment officer at EventShares.
Markets rallied this month after the U.S. and China took steps to ease tension in advance of their next round of talks. That had fueled speculation among investors that the two countries may at least reach an interim deal on trade.