Team Trump on Friday threw cold water on reports that the administration was close to cutting a trade deal with China.
Reports earlier Friday said that President Trump had asked officials to prepare a draft of a trade agreement with the world’s second largest economy, prompting the Dow to rise.
But then CNBC, citing a trio of administration officials, reported that the deal was not that close, and the markets see-sawed, falling to 140 points down as of 11:45 a.m.
Some investors stressed the need for caution, pointing out that the positive trade news emanating from some quarters of the White House could have more to do with the midterm elections than reality.
“I think it’s maybe temporary, because Tuesday is election day,” Richard Bernstein, the CEO of Richard Bernstein advisers, told CNBC on Friday. “We will see what happens Wednesday.”