U.S. stocks pared gains on Wednesday as Boeing shares dropped after President Donald Trump said the United States was going to order the grounding of Boeing's 737 MAX jets after a fatal crash in Ethiopia.
Also creating bearishness, Trump said he was in no rush to complete a trade deal with China that Washington wants to include structural reforms by Beijing, including how it treats U.S. intellectual property. "The market took (the comment) to mean a trade deal still isn't imminent," said Michael Antonelli, market strategist at Robert W. Baird in Milwaukee.
Boeing Co shares were down about 2 per cent, amounting to a more than 50-point drag on the Dow, which was last up just 0.2 per cent. The weekend crash of a Boeing 737 MAX 8 in Ethiopia was the second fatal crash involving the aircraft in months. A number of other countries have announced they were grounding the best-selling 737 MAX jets.
Stocks had risen sharply earlier after inflation data backed the Federal Reserve's patient stance on future interest rate hikes. The Dow Jones Industrial Average rose 39.52 points, or 0.15 per cent, to 25,594.18, the S&P 500 gained 19.05 points, or 0.68 per cent, to 2,810.57 and the Nasdaq Composite added 56.37 points, or 0.74 per cent, to 7,647.40.
Advancing issues outnumbered declining ones on the NYSE by a 2.57-to-1 ratio; on Nasdaq, a 1.79-to-1 ratio favoured advancers. The S&P 500 posted 61 new 52-week highs and one new low; the Nasdaq Composite recorded 62 new highs and 26 new lows.
(With inputs from agencies.)