The US markets ended in red on Tuesday on concerns about US-China trade talks after President Donald Trump claimed there are no signs that China is following through on plans to purchase US agricultural products and suggested the Chinese are hoping to wait out the US presidential election to get a better deal. He added that is the problem with China, they just don't come through. My team is negotiating with them now, but they always change the deal in the end to their benefit. China and the US agreed to restart trade talks late last month after they fell through in May. The two countries have been engaged in a trade war since last year. In that time, they have slapped tariffs on billions of dollars worth of each other’s goods. Besides, traders also looked to the start of a Federal Reserve monetary policy meeting. Market expectations point to a quarter-point rate cut.
On the economic front, after reporting a sharp pullback in US consumer confidence in the previous month, the Conference Board released a report showing confidence rebounded by much more than anticipated in the month of July. The Conference Board said its consumer confidence index surged up to 135.7 in July after tumbling to a revised 124.3 in June. Street had expected the index to climb to 125.0 from the 121.5 originally reported for the previous month. Meanwhile, a report released by the Commerce Department showed personal income and spending in the US both rose in line with street estimates in the month of June. The Commerce Department said personal income climbed by 0.4% in June, matching the downwardly revised increase in May. Street had expected income to rise by 0.4% compared to the 0.5% growth originally reported for the previous month.
Dow Jones Industrial Average dropped 23.33 points or 0.09 percent to 27198.02, Nasdaq declined 19.72 points or 0.24 percent to 8273.61 and S&P 500 was down by 7.79 points or 0.26 percent to 3013.18.
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