The U.S. President Donald Trump said over the weekend that reports about U.S. willingness to lift tariffs were "incorrect," only two days after a Chinese official said both sides agreed to rollbacks if talks progress. The U.S. President Donald Trump comments worsened sentiment already hit by a similar statement from White House trade adviser Peter Navarro that the tariff rollback plan faced fierce internal opposition at the White House. That ended days of optimism as officials said tariffs would be rolled back and the deal would be signed soon.
Both sides are working to sign what the White House has described as a phase one trade deal. Officials from both countries said on Thursday that China and the United States had agreed to roll back tariffs already in place on each others' goods in a "phase one" trade deal to end a damaging trade war, but the idea has been met with stiff opposition within some quarters of the Trump administration.
The next hints on progress in negotiations with China may come Tuesday, when Trump is scheduled to deliver a speech on trade and economic policy at the Economic Club of New York.
Shares of real estate sector were best-performer among 11 sectors of the S&P 500 index, as the group pays relatively big dividends, and investors have flocked to those stocks and away from cyclical ones when worries are high that the trade war will hurt the economy. On the other side, energy stocks suffered losses as the price of oil weakened.
Boeing shares soared 4.5% after it said it hopes to resume deliveries of its 737 Max jet next month.
Qualcomm Inc shares fell 2.2% after Morgan Stanley downgraded the chipmaker to equal-weight from overweight.
Cisco shares dropped 1.1% as Piper Jaffray downgraded the network gear maker to neutral from overweight.
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