US equity markets retreated, under pressure from a disappointing earnings releases from bellwether Caterpillar Inc and as investors eyed another busy week ahead on the earnings and econmic calendar - Dow fell -209-points or -0.84%,paring an earlier decline of over >400-points. The broader S&P500 lost -0.78%, The technology-centric NASDAQ shed -1.10%, with Nvidia Corporation slumping -13.82% after the chip maker said it expects to report US$2.2B in fiscal fourth-quarter revenue, below its previous outlook of US$2.7B. The company cited "deteriorating macroeconomic conditions, particularly in China." US equity markets rallied last Friday (25 January) amid some upbeat corporate earnings and with President Trump and congressional Democrats reaching a deal to at least temporarily reopen the government until 15 February - Dow gained +184-points or +0.75%. The broader S&P500 rose +0.85% and NASDAQ +1.29%. US Treasury Secretary Steven Mnuchin he thought the US and China were “making a lot of progress” in trade talks, with currency issues also on the agenda. Mr Mnuchin's comments came hours after Commerce Secretary Wilbur Ross said a deal was “miles and miles from getting a resolution”. Chinese president Xi Jinping’s top economic aide, vice premier Liu He, will be in Washington starting Wednesday (30 January) to continue trade negotiations with the US. The talks will include US trade representative Robert Lighthizer and Treasury secretary Steven Mnuchin. President Trump and Mr Xi agreed last year to a 90-day truce. If a deal is not reached by March 1, Mr Trump has said he could move forward with new tariffs on Chinese goods. Elsewhere, the Wall Street Journal reported last Friday (25 January) that the Fed could maintain a larger portfolio of Treasuries and mortgage-backed securities, saying officials are close to deciding on an earlier end to their wind-down program. For the week, the Dow eked out a +0.12 rise to log its fifth consecutive weekly advance - the longest such streak since the string of five weekly gains ended 3 August last year. The Nasdaq rose +0.11% to extend its run of weekly gains to five, while S&P500 slipped -0.22% (the indices smallest weekly move since October last year).
