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  • Trade-war headlines weigh on market sentiment on Friday.
  • Apple shares fall on cautious sales outlook.
  • Technology sector underperforms.

Major equity indexes in the U.S. on Friday snapped their three-day winning streak on Friday as the latest headlines surrounding the trade conflict between the United States and China weighed on the market sentiment.

CNBC’s Washington correspondent Eamon Javers earlier today reported that a senior administration official told him that reports of President Trump getting ready to cut a trade deal with China wasn’t true. Later in the day,  Larry Kudlow, White House economic adviser and the director of the National Economic Council, said that depending on how negotiations with Chinese President Xi go, Trump could pull the trigger on additional tariffs on China and added that Trump has not asked the cabinet to draw up a plan on China trade. The trade-sensitive S&P 500 Materials and Industrials indexes both lost 0.3% on the day.

On the other hand, despite the upbeat Q3 earnings reports, Apple’s cautious sales outlook due to low demand expectations in EM forced its shares to lose around 7% on Friday and weighed on the S&P 500 Technology Index, which closed the day 1.9% lower.

Commenting on today’s market action, “Investors are looking at risk on, but they are doing it in a cautionary approach. They aren’t rushing back into big FAANG type names. It’s something to watch, because you need those names to participate in the overall market if it’s going to move much higher as they are big dollar prices,” Robert Pavlik, chief investment strategist and senior portfolio manager at SlateStone Wealth LLC in New York, told Reuters.

The Dow Jones Industrial Average lost 111.34 points, or 0.44%, to 25,269.4, the S&P 500 dropped 17.6 points, or 0.64%, to 2,722.77 and the Nasdaq Composite fell 77.06 points, or 1.04%, to 7,356.99. For the week, these three indexes gained 2.35%, 2.4%, and 2.65% respectively.