NEW YORK (Reuters) – Concerns that a trade deal between the U.S. and China may not be imminent reined in a rally in world equity markets and reversed gains on Wall Street on Friday, while strong U.S. wage growth boosted U.S. bond yields.

Markets had earlier climbed on hopes that the world’s two biggest economies were mending their shaky trade relations.

A steep decline in shares of Apple Inc further weighed down sentiment in the U.S. stock market after the iPhone maker warned sales for the crucial holiday quarter would likely miss expectations.

A senior official in the administration of U.S. President Donald Trump on Friday dismissed as untrue a media report that said Trump was preparing a possible trade deal with China, a CNBC reporter said in a post on Twitter.

“There is a long way to go” on negotiations, the unnamed official told CNBC’s Eamon Javers, according to his tweet.

That erased earlier gains in the U.S. stock market and curtailed a rally in global shares that had lifted emerging market stocks up by their largest daily gain since 2016.

In Europe, Germany’s export-heavy DAX .GDAXI had jumped as much as 1.5 percent, its best session since July, before giving up most of its gains.

The pan-European STOXX 600 index rose 0.30 percent and MSCI’s gauge of stocks across the globe .MIWD00000PUS gained 0.13 percent.

The Dow Jones Industrial Average .DJI fell 125.44 points, or 0.49 percent, to 25,255.3, the S&P 500 .SPX lost 20.32 points, or 0.74 percent, to 2,720.05 and the Nasdaq Composite .IXIC dropped 89.41 points, or 1.2 percent, to 7,344.65.

Apple’s shares tumbled 6.8 percent, taking its market value below $1 trillion, after the iPhone maker warned sales for the crucial holiday quarter would likely miss expectations.

U.S. job growth rebounded sharply in October and wages recorded their largest annual gain in 9-1/2 years, pointing to further labor market tightening that could encourage the Federal Reserve to raise interest rates again in December.

Benchmark 10-year notes US10YT=RR last fell 13/32 in price to yield 3.1931 percent, from 3.144 percent late on Thursday.

The dollar index .DXY, tracking the greenback against six major currencies, rose 0.05 percent, with the euro EUR= up 0.04 percent to $1.1411.

Oil prices were weighed down by a report that the U.S. government has agreed to let eight countries, including close allies South Korea and Japan, as well as India, keep buying Iranian oil after Washington re-imposes sanctions.

U.S. crude CLcv1 fell 0.44 percent to $63.41 per barrel and Brent LCOcv1 was last at $73.04, up 0.21 percent on the day.

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