Hopes had risen that the two sides were close to reaching a mini deal, but comments from President Trump and recent USA legislation backing Hong Kong pro-democracy protests and China's Uighur minority had appeared to throw the talks off track.
"In some ways, I think it's better to wait until after the election, if you want to know the truth", he told reporters.
Surprisingly good company earnings and solid economic data have helped keep investors in a buying mood this fall against a backdrop of optimism that the US and China were nearing a trade deal.
Last week, Trump signed a bill that would require the US placing sanctions on Chinese officials linked to human rights abuses in Hong Kong.
Watch above, via CNBC.
China warned on Wednesday that US legislation calling for a tougher response to Beijing's treatment of Uighurs in the western Chinese region of Xinjiang will affect bilateral cooperation.
And Kristina Hooper, chief global market strategist at Invesco, told Bloomberg TV: "If we do just muddle along and there aren't the tariff increases on December 15, we'll probably see something of a stable stock market environment".
A full-blown global trade war is now seen as the biggest threat to world markets.
Futures linked to the Dow Jones Industrial Average advanced 0.3%, while the Stoxx Europe 600 index gained 0.3%.
Gold prices seesawed in the last two days on flipping news about the US-China trade deal, Mr. Patel added.
U.S. Treasury Secretary Steven Mnuchin said deputy negotiators held a call in the last 24 hours and are "actively working" toward a deal.
If no agreement is reached soon, the next important date is December 15, when Washington is scheduled to impose more tariffs on Chinese goods.
On Monday, Trump said he would hit Brazil and Argentina with trade tariffs for "massive devaluation of their currencies".
CMC Markets analyst Michael Hewson injected a note of scepticism however, saying: "one can't help feeling that United States officials appear to be gaming the market, and that despite the change in tone any deal is no closer than it was 24 hours ago".
Beijing reacted furiously, calling the legislation an attempt to interfere in "China's internal affairs" and promising to react "accordingly".
President Trump announced that trade negotiations with China were at a "critical stage".
"Should the tariffs...take effect as planned, a phase 1 deal would be very much in doubt", Commerzbank analyst Hao Zhou and economist Bernd Weidensteiner said in a note published Wednesday.
Trump threatened new tariffs in response to France's 3 percent tax on revenue major U.S. tech companies earn by providing a range of services, including targeted advertising or hosting digital marketplaces.