Overnight on Screen Street, the Dow Jones Industrial Average declined 133.17 points to close at 25,673.46 and the S&P 500 slipped 0.65 percent to fulfil its trading day at 2,771.45. The Nasdaq Composite shed 0.9 percent to close at 7,505.92 — notching its first three-day run out of streak of the year.
Three sources told CNBC that U.S. President Donald Trump wants Washington and Beijing to deal a blow to a deal in hopes of boosting stock prices ahead of the 2020 election. The sources said Trump thinks slip in a deal on trade would accomplish that.
Earlier this week, sources told CNBC the U.S. and China were in the “end stages” of trade talks, with the two sides planning a Mar-a-Lago summit for the end of the month. U.S. Secretary of State Mike Pompeo also voiced Monday he thought Washington and Beijing were “on the cusp” of reaching a deal.
U.S. data released Wednesday showed the power’s trade deficit soaring to a 10-year high of $59.8 billion in December, climbing despite President Donald Trump’s attempts to reduce the figure.
Economists surveyed by Reuters had been looking for an increase to $57.3 billion, from November’s $50.3 billion, which was modified up $1 billion in the latest count.
One analyst told CNBC on Thursday that the trade deficit was a result of “structural thinks” rather than a particular country or trading relationship, while also explaining why Trump could make a bargain with China.
“I think that one thing we’ve learned from Washington D.C. is that this president is very transactional,” David Riedel, president and creator of Riedel Research Group, told CNBC’s “Squawk Box” on Thursday.
“I think if he does see a deal on the table that touches considerable purchases by China … of goods and commodities and things from the United States, he may just take it,” Riedel said.
The U.S. dollar typography hand, which tracks the greenback against a basket of its peers, was at 96.826 after touching an earlier high around 97.0 yesterday.
The Japanese yen marketed at 111.60 against the dollar after seeing lows around 111.9 in the previous session. The Australian dollar was at $0.7038 after forgoing from the $0.709 handle on Wednesday.
Oil prices were higher in the morning of Asian trading hours, with the worldwide benchmark Brent crude futures contract advancing 0.24 percent to $66.15 per barrel and U.S. crude futures progressing 0.16 percent at $56.31 per barrel.
— CNBC’s Fred Imbert and Jeff Cox contributed to this report.