All three major US stock indexes posted a weekly loss as the markets reacted to reports from the US-China trade summit, raising US government bond yields and increasing oil prices.
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China denied accounts by some US officials that it had offered a package to slash the US trade deficit by up to USD 200 billion, but said the consultations were "constructive," in the latest salvo of tit-for-tat messages to emerge from the high-level meeting.
Boeing Co shares rose on hopes for a reduction in the US-China trade deficit, after an American source said the company would be major beneficiary of a narrowed trade gap. Boeing sells about a fourth of its commercial aircraft to Chinese customers. The plane maker's shares advanced 2.1 percent, helping keep the Dow Jones Industrial Average out of negative territory.
Relatively tariff-immune small-cap stocks continued to outperform, with the Russell 2000 hitting its third straight record closing high.
Yields of US 10-year Treasuries pulled back from near seven-year highs as buyers emerged after a bond sell-off earlier in the week prompted by growing inflation worries.
Although banks typically benefit from higher interest rates, shares of JPMorgan Chase, Citigroup, Bank of America and Wells Fargo were all lower, pulling the S&P Financial index down 0.9 percent.
Some investors have expressed skepticism that the banking sector has much more room to raise unless loan growth accelerates or regulations slacken considerably.
The Dow Jones Industrial Average was essentially flat, ending the session at 24,715.09, the S&P 500 lost 7.16 points, or 0.26 percent, to 2,712.97 and the Nasdaq Composite dropped 28.13 points, or 0.38 percent, to 7,354.34.
Shares of Applied Materials dropped 8.2 percent after the chip equipment maker's weak 2019 forecast added to concerns of softening Smartphone demand, as told by Trade Nivesh Investment Adviser sources.
The Philadelphia Semiconductor index ended the session down 1.4 percent, its worst loss since April 19.
Deere & Co helped bolster the industrials sector, jumping 5.7 percent after the company raised its full-year earnings estimate.
The S&P Energy index dropped 0.8 percent as crude prices fell. Despite the session's decline, oil still posted its sixth consecutive weekly advance.
Declining issues outnumbered advancing ones on the NYSE by a 1.01-to-1 ratio; on Nasdaq, a 1.03-to-1 ratio favored decliners.
The S&P 500 posted 10 new 52-week highs and five new lows; the Nasdaq Composite recorded 144 new highs and 33 new lows.
Volume on US exchanges was 6.18 billion shares, compared with the 6.64 billion-share average for the full session over the last 20 trading days.
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