WEDNESDAY – Stocks fell on Wednesday as investors sought further indications that a trade deal between China and the U.S. could be reached in the near future.
The Dow Jones Industrial Average pulled back 75 points as Exxon Mobile and Walgreens Boots Alliance lagged. The S&P 500 dipped 0.4 percent, led by declines in energy and health care. The Nasdaq Composite declined 0.5 percent.
Stocks are off to a hot start this year, with the S&P 500 rising more than 11 percent through Tuesday’s close. Increasing expectations that a trade deal will get done have partly helped equities surge in 2019.
However, there is growing fear that an agreement may be fully priced in, possibly limiting any more gains from positive trade news.
Recently, the S&P 500 has had trouble making a significant break above 2,800, a key level being watched by investors. The broad index closed above that level on Friday, but fell back below it this week.
Meanwhile, the U.S. trade deficit increased to a 10-year high of $59.8 billion despite the administration’s efforts to reduce the number. Economists surveyed by Refinitiv expected the number to increase to $57.3 billion.
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