Stocks – Dow Rebound Loses Steam; Trump Denies Trade Talk Breakdown
Investing.com – The rebound in U.S. stocks lost steam on Tuesday, even as President Donald Trump denied reports that trade talks between the United States and China had stalled and attempted to downplay the prospect of a trade war between the world’s largest two economies.
The rose 0.82%, the added 0.80%, while the rose 1.14%. The gains erased about a third of Monday’s big losses.
Trade talks between the U.S. and China reportedly hit a snag, CNN reported, citing sources close to the discussions. The news appeared to sour earlier sentiment on trade even as Trump denied that talks had stalled.
Trump showed no intention of escalating trade tensions in the wake of Beijing plans to launch retaliatory tariffs on U.S. goods, calling the current trade dispute a “little squabble.”
“We have a dialogue going. It will always continue,” said Trump, who had earlier announced plans to meet Chinese President Xi Jinping at a G20 summit in Japan late next month in a bid to make progress on the trade dispute.
Despite the uncertainty over trade, industrials and tech stocks, trade-sensitive sectors, ended the day higher.
But analysts said the rebound in the market was less likely a sign that optimism on trade had returned, but rather a relief rally following the bloody session on Wall Street a day earlier.
“(Yesterday’s move) was probably just a little too much to the downside,” said Chris Battifarano, investment chief at FineMark National Bank & Trust in Ft. Myers, Fla.
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