Stocks Retreat as North Korea Summit Looks Iffy: Markets Wrap

U.S. stocks erased early gains and turned lower Tuesday as optimism over improving trade relations with China gave way to renewed concerns about geopolitical tensions with North Korea. “What we saw when the meeting was originally scheduled was that the market reacted favorably to that, so I think that any cancellation could cause a little bit of a pullback,” said Adam Phillips, director of portfolio strategy at EP Wealth Advisors. Earlier, stocks rallied following China’s announcement that it will cut the import duty on passenger cars to 15 percent, signaling a further easing of trade tensions with the U.S. The Stoxx Europe 600 Index climbed, and emerging-market shares advanced, ending a three-day losing streak.