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Bloomberg
The decline in US stocks deepened as disappointing results from Alphabet Inc weighed on technology companies amid heightened angst over US-China trade talks.
The S&P 500 Index fell from a record high, while the Nasdaq-100 Index was poised for its biggest drop in more than a month. Pfizer Inc surged on better-than-estimated results. Treasuries rose on the eve of the Federal Reserve’s decision. The euro climbed as data showed Europe began 2019 with an unexpected growth spurt, easing pressure on the central bank to add stimulus.
The rally in risk assets lost steam at the end of a strong month for stocks as trade talks got under way in Beijing with significant issues still unresolved. The US wants to leave some punitive tariffs in place as a means to enforce a deal, the Wall Street Journal reported, citing unidentified officials and people briefed.
Investors are also getting ready to hear the Fed’s assessment on the economy on Wednesday as analysts bet policy makers will hold rates low to boost inflation that remains weak despite solid growth.
Companies reporting earnings include: Apple, HSBC, Macquarie and Royal Dutch Shell.
US Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin landed in Beijing on Tuesday and will head into a new round of talks before Chinese Vice Premier Liu He goes to Washington next week.
China and the US hope to seal a deal by this month. The US Fed’s rate decision is on Wednesday, while the Bank of England sets interest rates on Thursday. Friday brings the US jobs report: non-farm payrolls are projected to rise by 187,000 in April. Economists expect an unemployment rate of 3.8 percent, with average hourly earnings growth picking up to 3.3 percent.