Markets were mostly lower on Monday.
The S&P 500 fell 0.2 percent, the STOXX Europe 600 was flat and the Shanghai Composite plunged 1.8 percent.
Investor sentiment was dampened by comments by US President Donald Trump over the weekend that recent reports about an agreement to roll back tariffs were not accurate.
“There was a lot of incorrect reporting,” he said. “The level of tariff lift is incorrect.”
Amid high levels of optimism in the markets, the persistent uncertainties over a trade deal could lead to a correction, according to a CNBC report.
“With a full-blown trade agreement still likely many months out into the future if at all, it’s a little hard for me to take there’s this much optimism,” said Randy Frederick, vice president of trading and derivatives at Charles Schwab.
“The short-term risk is elevated for a pullback in equities and a material advance in volatility,” said Andrew Thrasher, founder of Thrasher Analytics.
Still, DataTrek co-founder Nicholas Colas thinks that stocks still have lots of room to advance.
“2019’s no-growth earnings will make for easy [comparables] in 2020 if the U.S.-China trade war abates,” he wrote on Monday. “Unless U.S.-China trade talks hit a large pothole in coming weeks, that’s the narrative that should continue to drive US equity prices higher through the end of the year.”
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