Stocks fell Thursday despite better-than-expected earnings from Facebook and Apple and the Federal Reserve's third rate cut of 2019. Investors took a pause and turned their focus to U.S.-China trade negotiations.
The Dow Jones Industrial Average plummeted 217.8 points to pause for noon at 26,968.89
The S&P 500 sank 18.02 points to 3,028.75
The NASDAQ Composite Index flopped 33.8 points to 8,270.17
Media reports circulated Thursday that Chinese officials have been casting doubt over the possibility of a long-term trade deal with the U.S. The report added Chinese officials are concerned about President Donald Trump's “impulsive nature” and the risk of him backing out of any kind of deal.
Trade bellwether Caterpillar dropped 2.2% along with Micron Technology.
Wall Street also cheered strong earnings from Apple and Facebook.
Apple shares rose 1.7% after the tech giant posted earnings per share of $3.03 on revenue of $64 billion. Analysts expected a profit of $2.84 per share on sales of $62.99 billion. The company's iPhone and services revenues also topped estimates.
Facebook, meanwhile, climbed more than 2% after the social-media company reported a profit of $2.12 per share, topping an estimate of $1.91 per share. Facebook also reported stronger-than-expected average revenue per user.
So far, two thirds of the S&P 500 have reported quarterly numbers. Of those companies, 75% posted better-than-expected results
In other corporate news, Italian-American automaker Fiat Chrysler (FCA) announced a landmark merger with French rival PSA Peugeot Citroen, which will create the world's fourth-largest car maker.
FCA will pay its shareholders a 5.5-billion-euro ($6.1-billion U.S.) special dividend and the two companies will join forces through a 50-50 share swap. The new company's shares will be listed in New York, Paris and Milan.
Prices for the benchmark 10-year U.S. Treasury gained ground, lowering yields to 1.71% from Wednesday's 1.77%. Treasury prices and yields move in opposite directions.
Oil prices slipped 92 cents to $54.14 U.S. a barrel.
Gold prices gained $16.20 to $1,512.90 U.S. an ounce.