Stocks are dropping sharply after President Trump threatened more tariffs against China. The escalation of tensions came as investors were hoping the long-running trade war between the world’s two biggest economic powers might be winding down. (May 6) AP, AP

U.S. stocks wiped out earlier losses and moved higher Friday after Treasury Secretary Steven Mnuchin described high-stakes trade talks with the Chinese delegation in Washington as “constructive.”

Mnuchin made the remarks to reporters after the negotiations between the two countries ended with no deal. The Chinese delegation is expected to leave Friday evening. Later in the day, President Trump tweeted that the negotiations were “candid and constructive.” 

The Dow Jones industrial average closed up 114 points,