A day after reports surfaced that the U.S. and China were pursuing talks to defuse a trade war, things may have taken an about face.
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The Trump administration reportedly plans to propose slapping a 25-percent tariff on $200 billion of imported Chinese goods.
This comes after initially setting them at 10 percent, in a bid to pressure Beijing into making trade concessions, a source familiar with the plan told Reuters.
The announcement could come as early as Wednesday.
Dow Jones futures were unchanged. The S&P 500 added 0.05% and the Nasdaq Composite was up 0.27%.
Fears of an imminent escalation in the tariff war between the United States and China was reflected in global markets on Wednesday.
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China’s Shanghai Composite finished the session down 1.8%.
Japan’s Nikkei ended the day gaining 0.86%.
Apple-linked shares advanced after the iPhone maker posted better-than-expected results.
In Europe, London’s FTSE traded 0.53% lower, Germany’s DAX was unchanged and France’s CAC gained 0.26%.
Investors will be watching the Fed, which concludes its two-day policy meeting on Wednesday. It is widely expected that the central bank will announce that it will keep interest rates unchanged.
After the close of the markets on Tuesday, Apple reported higher quarterly earnings and revenue than expected, as iPhone sales climbed and revenue from services like the App Store hit a record high.
Despite slow-growing demand for its flagship device, Apple has benefited from higher iPhone prices following the introduction of the range-topping iPhone X, which starts at $999.
Cupertino, California-based Apple said its fiscal third-quarter profit jumped 32% to $11.52 billion. On a per-share basis, earnings hit $2.34 to beat Wall Street’s estimate of $2.18.
Total revenue grew 17% to $53.27 billion, which also topped a consensus estimate of $52.34 billion.
The Dow Jones Industrial Average gained 108.36 points, or 0.43%, to 25,415.19. The S&P 500 rose 13.69 points, closing at 2,816.29. The Nasdaq Composite was up 41.79 points at 7,671.79.
| Ticker | Security | Last | Change | %Chg |
|---|---|---|---|---|
| I:DJI | DOW JONES AVERAGES | 25415.19 | +108.36 | +0.43% |
| SP500 | S&P 500 | 2816.29 | +13.69 | +0.49% |
| I:COMP | NASDAQ COMPOSITE INDEX | 7671.7886 | +41.78 | +0.55% |
The Dow and S&P finished July with the best monthly performance since February.
Earnings reports are expected from Humana and Sprint before the market opens, Tesla and Express Scripts in the afternoon.
The start of a new month also means automakers will release their sales figures for July.
On the economic calendar, in addition to the Fed decision, data is expected on manufacturing and construction spending.
FOX Business’ Leia Klingel and Matthew Rocco contributed to this article.
