Stocks finished lower Monday, snapping a three-day winning as they kicked off the final week of trading before a 15 percent tariff is scheduled to hit about $160 billion of Chinese goods.
The Dow Jones Industrial Average fell 105.46 points, or 0.4 percent, closing on session lows. The Nasdaq and S&P 500 shed 0.4 percent and 0.3 percent, respectively.
Speaking Monday, a Chinese deputy commerce minister said Beijing wants “satisfactory results as soon as possible." Chinese trade negotiators have called on the U.S. to roll back tariffs as part of a phase one trade agreement, something President Trump said he doesn't want to do.
Also on the trade front, negotiators from the U.S., Mexico and Canada have reached an agreement, which could come together in the next 24 hours, that makes changes to the enforcement of the United States-Mexico-Canada Agreement, multiple sources have told FOX Business.
Trade sensitive names like Apple, Caterpillar and Micron Technology are expected to remain in focus all week as the U.S. and China work toward a phase one agreement.
Automakers Ford, General Motors and Fiat Chrysler were little changed following the USMCA news.
Pacific Gas & Electric shares surged after the San Francisco-based utility reached a $13.5 billion agreement to settle claims related to wildfires caused by its outdated equipment and negligence.
Cancer-therapy developer Synthorx soared more than 170 percent after the French drugmaker Sanofi made a $2.5 billion offer.
Elsewhere, the recreational-vehicle manufacturer Thor Industries was lower after posting sliding first-quarter sales in its key North American market. Thor expects North American sales to remain flat to slightly lower for its fiscal year 2020.
Commodities traded mixed with West Texas Intermediate crude oil down 0.4 percent at $58.99 a barrel and gold little changed near $1,465 an ounce.
U.S. Treasurys gained, causing the yield on the 10-year note to fall by 1 basis points to 1.833 percent.
In Europe, London's FTSE was lower by 0.1 percent, Germany's DAX slid 0.5 percent and France's CAC fell 0.6 percent.
Asian shares were mostly higher Monday. Japan's benchmark Nikkei 225 edged up 0.3 percent, Hong Kong's Hang Seng was flat and the Shanghai Composite added 0.1 percent.
The Japanese Cabinet Office reported Monday that the economy expanded at a 1.8 percent annual pace in July-September, spurred by strong consumer purchases ahead of an Oct. 1 sales tax hike. That was much stronger than the 0.2 percent growth earlier reported and marked a fourth straight quarter of expansion for the world's No. 3 economy.
FOX Business' Ken Martin and The Associated Press contributed to this report.