S&P 500, Dow slip as trade-fueled rally pauses

(Reuters) – The S&P 500 and Dow Jones indexes stalled on Friday after a record run, as U.S. President Donald Trump contradicted reports that the United States and China would roll back existing tariffs.

FILE PHOTO: Traders work on the floor at the New York Stock Exchange (NYSE) in New York, U.S., November 4, 2019. REUTERS/Brendan McDermid

However, the Nasdaq eked out gains on the back of a rise in shares of Facebook Inc (FB.O) and Microsoft Corp (MSFT.O).

The benchmark S&P 500 and blue-chip Dow had closed at all-time highs on Thursday after officials said both countries had agreed to roll back tariffs on each others’ goods in a “phase one” trade deal if it is completed.

However, Trump said on Friday he had not agreed to roll back the tariffs, although Beijing would like him to do so. The news sent all the three major U.S. stock indexes sharply lower, but the S&P and Nasdaq quickly recovered to trade near flat.

“Let’s not forget that in the past we have come so close to a trade agreement and at the last minute there has been a pullback,” said Michael Geraghty, capital market strategist at Cornerstone Capital Group in New York.

“The president is very set in his way and the Chinese have their viewpoint too, so it seems it’s going to take a bit longer for the trade deal to be nailed down.”

Seven of the 11 major S&P 500 sectors were trading lower, with the energy sector shedding 1.4% as oil prices fell.

The financials sector .SPSY was

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