Commercial concerns push the S&P 500 below historic highs

Commercial concerns push the S&P 500 below historic highs

US equities hit record intraday levels, but lost ground after reports that US tariffs on Chinese goods will remain until after the November presidential election.

The S&P 500 and the Nasdaq Composite fell 0.2 percent, canceling their morning moves to record the highs that followed mostly optimistic financial results to start the corporate earnings season. Both indices posted closing records on Monday.

The Dow Jones Industrial Average was the best, supported by a record annual profit at JPMorgan Chase. The index closed 0.1 percent higher but reduced previous earnings that brought it back above 29,000 to a new intraday record.

According to media reports, the United States will maintain existing tariffs on Chinese goods for 10 months, at which time the Trump administration will review Beijing’s compliance with the Phase One trade agreement and potentially reduce withdrawals. Donald Trump is expected to sign the pact Wednesday.

The debt of the United States government has gained, sending lower yields. The yield on the 10-year Treasury note fell by 3.4 basis points to 1.8144 percent.

The profit gains of JPMorgan and Citigroup helped favor the early earnings of the shares. Delta Air Lines, whose shares increased by more than 3%, also produced positive results in the fourth quarter after strong travel demand during the holiday season.

Investors also revised inflation data which showed that consumer prices in the United States rose at their slowest pace in four months in December, likely supporting the Federal Reserve’s case for keeping rates unchanged.

Stocks were highest across Europe, with Stoxx 600 rising 0.3 percent across the continent.

On Tuesday, in Asia, the Hang Seng fell by 0.2 percent, while the Japanese Topix grew by 0.3 percent.

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