Stocks end lower amid new fears on trade talks

U.S. stocks ended a backand-forth session lower, Treasuries fell and the dollar advanced as investors looked past trade comments by President Donald Trump amid a fresh batch of solid economic data.

The S&P 500 Index fell to session lows after Trump raised doubts about the outcome of talks between his trade representatives and China’s negotiator. Stocks battled back to erase those losses before fading into the close. Energy producers rallied on merger activity, while Cisco Systems Inc.’s weak earnings took down technology shares. The surging dollar bolstered domestically focused small caps to a fresh record. Data on manufacturing and employment that showed economic strength lifted Treasury yields to 3.11 percent.

Recent evidence that the world’s largest economy will continue to pick up steam is currently just a consolation prize for investors, who are having to adjust to the highest U.S. bond yields in years as well as second-guess issues stretching from peace on the Korean peninsula to Italian populists forming a government. Looming over it all are trade talks between the U.S. and China, the outcome of which could cement the global growth story — or derail it.

In Europe, the common currency euro was slightly weaker and Italian bonds dropped as party leaders sealed an agreement to form a populist government. The pound jumped but then pared gains amid conflicting reports over Britain’s future in the EU customs union. The Stoxx Europe 600 Index advanced. Earlier in Asia equities rose in Japan and fell in Australia and Korea.

Elsewhere, the Turkish lira deepened its losses, while emerging-market stocks slipped.

Saul Gravy / Getty Images S&P 500 Index fell after Trump raised doubts about the outcome of talks between his trade representatives and China’s negotiator.