Wall Street’s main indexes eased from record levels on Monday after a report stoked fresh fears about a resolution to the U.S.-China trade dispute that has hit global growth and roiled financial markets over the past 16 months.
The mood in Beijing about a deal was pessimistic due to President Donald Trump’s reluctance to roll back tariffs, CNBC reported, citing a government source.
Investors had turned optimistic over the weekend after Chinese state media said the two sides had held “constructive” trade talks, days after White House economic adviser Larry Kudlow said they were getting close to a trade deal.
“This is a market that’s going to live or die by the tone around trade,” said Art Hogan, chief market strategist at National Securities in New York.
“There is some good news that’s baked into this market, so when we get bad news (it’s) going to roll over.”
Seven of the 11 major S&P 500 sectors were lower, with the energy sector leading declines after a fall in oil prices.
