The S&P 500 has ended lower after a choppy trading session as bank and chipmaker stocks weighed on the index and investors grappled with US-China trade talks.
All three major US stock indexes posted a weekly loss as the markets reacted to reports from the US-China trade summit, rising US government bond yields and increasing oil prices.
“I think everybody’s waiting on some sort of direction on American trade talks that are occurring right now, and there’s anxiety about oil prices,” said Oliver Pursche, vice chairman and chief market strategist at Bruderman Asset Management in New York.
China denied accounts by some US officials that it had offered a package to slash the US trade deficit by up to $US200 billion, but said the consultations were “constructive,” in the latest salvo of tit-for-tat messages to emerge from the high-level meeting.
“Markets tend to get over that sort of thing very quickly lately,” Pursche said.
“You may have a statement that … impacts sentiment and movements over a half hour or so, but it reverses back because there’s so much confusion out there right now.”
Boeing Co shares rose on hopes for a reduction in the US-China trade deficit, after an American source said the company would be major beneficiary of a narrowed trade gap. Boeing sells about a fourth of its commercial aircraft to Chinese customers.
The plane maker’s shares advanced 2.1 per cent, helping keep the Dow Jones Industrial Average out of negative territory.
Relatively tariff-immune small-cap stocks continued to outperform, with the Russell 2000 hitting its third straight record closing high.
The Dow Jones Industrial Average was essentially flat, ending the session at 24,715.09, the S&P 500 lost 7.16 points, or 0.26 per cent, to 2,712.97 and the Nasdaq Composite dropped 28.13 points, or 0.38 per cent, to 7,354.34.
The S&P Energy index dropped 0.8 per cent as crude prices fell. Despite the session’s decline, oil still posted its sixth consecutive weekly advance.
Volume on US exchanges was 6.18 billion shares, compared with the 6.64 billion-share average for the full session over the last 20 trading days.