- Stocks lurched into the red during midday trading on Wednesday.
- Wall Street recoiled to a Reuters report that darkened trade war sentiment.
- The Dow, S&P 500, and Nasdaq are all heading toward losses.
Well, that didn’t take long. Just days after a Trump cabinet official assured markets that a November trade deal was still on the table, reports have emerged that the agreement may be delayed until at least December. The Dow and broader stock market traded lower on the news.
Dow on Track to Snap Daily Winning Streak
The Dow Jones Industrial Average looked poised to secure a fourth straight increase, but that daily winning streak now appears in doubt.
Shortly after 11:40 am ET, the Dow tumbled nearly 100 points within a matter of minutes before recouping some of those losses. At last check, the DJIA had declined 33.72 points or 0.12% to 27,458.91.
The Dow suddenly tumbled into decline during midday trading on Wednesday. | Source: Yahoo Finance
The S&P 500 and Nasdaq suffered similar setbacks, putting them on track to record losses of 0.13% and 0.47%, respectively.
The gold price tracked inversely with the dip in equities, rising more than 0.6%.
Reuters: Phase One Trade Deal at Severe Risk of Delay
The sudden lurch lower appeared directly correlated with a Reuters report that the “phase one” trade deal could be delayed until December – and that there’s an outside chance it might never arrive at all.
Citing an anonymous official, the publication said that Washington and Beijing are struggling to agree on both the terms of the trade agreement and the venue for the signing ceremony.
As CCN reported,