Wall Street pares early gains amid lack of clarity on details of phase one trade deal

  • China says amount of US farm purchases will be disclosed at later date.
  • USTR notes US agreed to modify tariffs in a significant way.
  • Financial shares underperform amid sharp drop in Treasury bond yields.

Wall Street's main indexes started the day on strong footing and hit fresh record highs as investors cheered China's confirmation of the completion of the phase one trade deal with the United States. However, the lack of details surrounding the agreement caused the rally to lose steam. As of writing, the Dow Jones Industrial Average and the S&P 500 were both down 0.35% on the day while the Nasdaq Composite was erasing 0.1%.

When asked about China's commitment to purchase of US agricultural products, Vice State Planner said the value of purchases will be disclosed at a later date. On the other hand, the US Trade Representative's Office in a statement noted that the US agreed to modify the tariffs on Chinese imports in a "significant way."

Among the 11-major S&P 500 sectors, the Financials Index is down 0.9% on the day pressured by a more-than-4% drop in the 10-year Treasury bond yield. On the other hand, the defensive Utilities Index is up 0.65%.

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