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According to the Wall Street Journal (WSJ), China quietly told the US that meddling in Hong Kong, Taiwan and other matters could jeopardize Chinese goods purchased under the phase-one trade deal.

Crossing red lines could put the trade deal at risk, the WSJ wrote, as reported by Reuters.

Market reaction

Despite this headline, Wall Street’s main indexes recovered slightly from session lows but remain deep in the negative territory. As of writing, the S&P 500 and the Dow Jones Industrial Average were down 1.55% and 1.85%, respectively. Meanwhile, Nasdaq Composite was losing 1.48%.