* Trump-Xi meeting set for Thursday and Friday
* Bank of America falls on Citigroup downgrade
* Nvidia top drag on S&P and Nasdaq after rating cut
* Indexes up : Dow 0.23 pct, S&P 0.03 pct, Nasdaq 0.06 pct
(Adds details, comments, updates prices)
By Yashaswini Swamynathan
April 4 U.S. stocks were little changed on
Tuesday, trading in a tight range, as investors fretted over the
ability of President Donald Trump to deliver on his policy
plans, and ahead of his potentially tense meeting with Chinese
President Xi Jinping.
However, the market moved off session lows after Trump said
the U.S. infrastructure bill may top $1 trillion and that his
administration was working on a major "haircut" on the
Dodd-Frank banking regulation, rekindling some of his campaign
The comments boosted industrial and material stocks, which
pushed the Dow to session highs. Caterpillar gained 2.5
percent and Boeing edged up nearly 1 percent. But, a drop
in financials and technology stocks checked gains on the S&P and
While U.S. equities have hit record highs due to Trump's
pro-business policy plans, recent setbacks in pushing reforms
through Congress have led investors to question his ability to
deliver on his promises.
Adding to investor nervousness is Trump's upcoming meeting
with Xi, one which the U.S. president expects "will be a very
difficult one," according to his tweet last week. He has held
out the possibility of using trade as a lever to secure China's
cooperation against North Korea at the Thursday-Friday meeting.
"We will probably have a period of consolidation here as the
realism sets in ... it's likely that we are going to see some
choppy sideways trading," said Jason Pride, director of
investment strategy at Glenmede in Philadelphia.
"Investors are having to go through a period of realism
here, which is a transition away from some of the policy-related
hype that surrounded the administration to the reality that much
of what was proposed was either not going to make it or be a
watered down version or be greatly delayed," he said.
At 11:50 a.m. EDT the Dow Jones Industrial Average
was up 47.51 points, or 0.23 percent, at 20,697.72, the S&P 500
was up 0.73 points, or 0.03 percent, at 2,359.57 and the
Nasdaq Composite was up 3.64 points, or 0.06 percent, at
Ten of the 11 major S&P 500 sectors were lower. The S&P
technology sector was off 0.25 percent, weighing the
most on the benchmark index.
The biggest drag on the S&P 500 and the Nasdaq was Nvidia
, which dropped 6 percent to $101.08 after Pacific Crest
downgraded the stock to "underweight" from "sector weight".
The financials index fell 0.26 percent, led by Bank
of America. The lender's stock dropped 1 percent after a
rating cut by Citigroup.
Declining issues outnumbered advancers on the NYSE by 1,406
to 1,373. On the Nasdaq, 1,354 issues rose and 1,341.
The S&P 500 index showed six 52-week highs and six lows,
while the Nasdaq recorded 29 new highs and 33 new lows.
(Reporting by Yashaswini Swamynathan in Bengaluru; Editing by