The S&P 500 was little changed Thursday after China said that it had no ongoing trade talks with the U.S., dashing investors’ hopes of an ease in tensions between the two nations.

The major averages posted strong gains on Wednesday, rising more than 1% each. That said, they finished the day well off their highs. At one point on Wednesday, the Dow was up more than 1,100 points.

Stocks were boosted on hopes that trade tensions between the U.S. and China would ease. Earlier this week, President Donald Trump said he is willing to take a less confrontational approach toward trade talks with Beijing. Further, Treasury Secretary Scott Bessent said Wednesday that the U.S. has the “opportunity for a big deal” on trade. Chinese imports are subject to a U.S. tariff of 145%.

But investors waiting for any signs of tariff negotiation were left disappointed. China said overnight that there were no trade talks taking place with the U.S., with Ministry of Commerce spokesperson He Yadong adding that “all sayings” regarding progress on bilateral talks should be dismissed. The spokesperson also called for the cancelation of “unilateral” tariffs.

“While it’s encouraging to hear a more dovish tone on tariffs from the administration, stocks remain range-bound for the time being, as the ultimate goal for markets is either a reversal of the tariffs or significant trade deals,” said Gaurav Mallik, chief investment officer of Massachusetts-based Pallas Capital Advisors. “It can take a few months for corrections to end, and we still believe that this is a correction given the speed of the declines.”

In addition, Trump said late Tuesday that he has “no intention” of firing Federal Reserve Chairman Jerome Powell, whose term as Fed chair will end in May 2026. This seemed to boost sentiment in the market, particularly as the relationship between Trump and Powell has been growing more tense in recent days. Earlier this week, the president called Powell a “major loser.”

Orders for durable goods jumped 9.2% in March, eclipsing a Dow Jones consensus of a 1.6% rise. Futures did not react to the report, suggesting investors are not looking at the data as a sign of a strong economy.