Markets fall as Trump plans to hold a news conference Friday on China

Markets reversed their morning gains and fell into negative territory on Thursday after President Trump announced he would hold a Friday news conference on China.

The Dow Jones Industrial Average was down 148 points, or 0.6 percent, and the S&P 500 was down 6 points, or 0.2 percent.

Earlier in the day, markets seemed on track to close out a third day in a row of gains, even as new data showed an additional 2.1 million Americans filing for unemployment last week and first-quarter GDP contracting 5 percent.

Trump’s announcement that he would hold a news conference sent jitters through the markets, raising concerns that escalating tensions could have an adverse economic impact.

China is advancing a law that would effectively nullify Hong Kong’s semi-autonomous status, a move that could endanger the financial hub’s special status.

Secretary of State Mike Pompeo reported to Congress this week that Hong Kong was no longer autonomous from China, potentially opening the door to a legal change in how America deals with Hong Kong in terms of trade and travel.

Trump could also take actions against China, which he has blamed for the spread of COVID-19 and made into a major issue in his reelection campaign. Trump has previously said he was mulling withdrawing from a January trade deal that scaled back some tariffs between the two countries.