By HVY Journalists: The Dow and broader U.S. stock market snapped a six-day winning streak Tuesday after President Trump’s top economic adviser said the United States doesn’t need a China trade deal to maintain its solid growth pace.
Dow Gives Up Gains; S&P 500, Nasdaq Flat-Line
All of Wall Street’s major indexes careened toward flat finishes on Tuesday. The Dow Jones Industrial Average settled down 14.17 points, or 0.1%, at 26,048.51. The index was up more than 200 points earlier in the day.
The broad S&P 500 Index of large-cap stocks pared losses to settle at 2,885.73, little changed from Monday’s close. Losses were largely concentrated in utilities and industrials stocks. On the opposite side of the ledger, consumer and communications companies finished higher.
Meanwhile, the technology-focused Nasdaq Composite Index headed toward a flat finish, settling at 7,822.57.
Kudlow: China Deal or Not, U.S. Economy is Strong
Larry Kudlow, director of President Trump’s National Economic Council, told CNBC on Tuesday that the U.S. economy will maintain its 3% growth pace with or without a new China trade deal.
“The U.S. economy is very strong,” Kudlow said. “I think we’re in pretty good shape and I think we’ll maintain a 3% growth pace this year.”
Gross domestic product (GDP) – the value of all goods and services produced in the economy – expanded 3.1% annually in the first quarter, much higher than expected. Based on the latest batches of economic data, U.S. GDP growth likely slowed considerably at the start of the second quarter.
As of June 7, the Atlanta Federal Reserve’s GDP tracker was forecasting second-quarter growth of just 1.4% year-over-year.
Several data releases from manufacturing to employment have confirmed a broad cooling in the U.S. economy in recent months. Last week, the Labor Department said nonfarm payrolls increased by just 75,000 in May, one of the weakest readings since the financial crisis.
Trade talks between the United States and China broke down last month after Beijing reportedly backed out of a deal. President Donald Trump and China’s Xi Jinping are still scheduled to hold face-to-face talks at the upcoming G20 summit in Osaka, Japan later this month.