The S& P 500 closed almost flat on Tuesday as investors'optimism that the Federal Reserve (FED/Fed) would maintain its dovish policy stance was offset by other twists in the Sino-US trade negotiations.
Financial stocks put pressure on the three major U.S. stock indexes. Financial stocks rebounded after Bloomberg reported that China resisted U.S. demands in trade negotiations.
Blue-chip Dow Jones Industrial Average ended its four-day run and the Nasdaq barely returned to the top of the flat before closing.
"Trade concerns are rising again, and the Trump administration is concerned that China will recover some of the promises made so far in the negotiations," said Chris Zaccarelli, Alliance's chief investment officer.
Bucky Hellwig, senior vice president of BB&T Wealth Management, agrees.
"China seems to be hesitant about certain terms of trade negotiations," Hellwig said. "And in my opinion, the market may be nervous before the Fed issues its statement."
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