Markets Slide as China Rejects U.S. Tariff Negotiations Claims

Global stock markets faltered on Thursday after Chinese officials firmly rejected reports of ongoing trade talks with the United States, calling such claims 'groundless' and lacking any factual basis. This announcement reversed a two-day rally in the S&P 500 and introduced renewed uncertainty, as investors had hoped for progress in resolving the escalating tariff dispute between the two economic powers. Both U.S. and Chinese officials restated entrenched positions: the U.S. signaled openness but required reciprocal action, while China insisted on mutual respect and equality for any negotiations to proceed. Mixed economic data and lowered corporate profit forecasts added to the market's volatility, highlighting investor anxiety over the lack of concrete developments. Chinese spokespeople reiterated that the tariff war was initiated by the U.S. and maintained that China would only negotiate under certain conditions, leaving little hope for imminent resolution. The impasse underscores the persistent global economic risks posed by the ongoing U.S.-China trade tensions.