Stocks Suddenly Slide On Report Chinese Say “Goodwill Damaged” And “Expectations For Progress Lowered”

With stocks trading all day as if some sort of trade deal between the US and China was imminent, 15 minutes before the close risk suddenly hit an air pocket and US equity indices suddenly slumped sharply lower after a Reuters report that Chinese officials had said the the US blacklisting of 28 Chinese companies had “damaged goodwill” and that as a result, “Beijing has lowered its expectations from the progress of trade negotiations.”

• GOODWILL DAMAGED BY THE U.S. DEPARTMENT OF COMMERCE’S BLACKLISTING OF 28 CHINESE COMPANIES THIS WEEK-CHINESE OFFICIALS
• BEIJING HAS LOWERED EXPECTATIONS FOR PROGRESS FROM U.S. TRADE NEGOTIATIONS THIS WEEK-CHINESE OFFICIALS BRIEFED ON TALKS

The report instantly cut over 80 points of gains from the Dow and the S&P was trading roughly where it opened, just around 2,920 as suddenly the market’s conviction of an “optimistic outcome” from tomorrow’s meeting was shaken to the core.