Stocks cover their losses - trade negotiations between USA - China will continue

Stocks recovered from sharp declines from the start of the session to the end of the day, with only minor losses. The recovery came when China confirmed it had no plans to withdraw from trade talks with the United States scheduled for later this week, although President Donald Trump threatened to raise prices for Beijing.

The Dow Jones Industrial Average fell 0.26%, or 68 points, after dropping 471 points at the start. S & P 500 lost 0.44%, while Nasdaq Composite fell by 0.50%.

The moods for US-Chinese trade became positive after China said it was preparing to send its trade team to Washington for trade talks even when Trump warned that $ 200 billion in Chinese goods could rise to 25 % of 10% on Friday.

"We hoped to make progress in our trade talks and we believe the US side can work with us and move in the same direction so we can reach an agreement that can be of benefit to both sides," he said Foreign Ministry spokesman Geng Shuang.

"Everyone in China and abroad is very concerned about the next round of talks, and we are also learning about the changes," he added. "The Chinese delegation is preparing to go to the US for the negotiations."

China's confirmation that trade talks will continue has fueled Wall Street speculation that the threat of Trump is just a maneuver to increase pressure on China in its quest to secure a peak in the negotiations that are believed to be nearing the final stage.

Boeing (NYSE: BA) and Caterpillar (NYSE: CAT), which had an impact on international trade, ended the day by more than 1% lower after dropping 2.8% and 3.4% respectively.

At the corporate performance front, Tyson Foods (NYSE: TSN) turned the mood after reporting better-than-expected earnings. Their shares rose 2.6%.

Energy stocks were one of the few sectors that ended the day in green after oil prices turned their tide as tensions rose in the Middle East. The United States deployed bombers and a group of carriers to the Middle East in response to reports of Iranian threats against US facilities in the region.

Read more:

• US – Iran – Iraq tension remain the main driver of the stock market today
• How top market players on Wall St think 2020 will look like on financial markets
• Money Flow before the start of the new trading week
• Cincinnati Financial Corporation (CINF.US) -Opportunity for long positions
• Asia stocks gain as Fed signals no rate cuts in 2020