Dow Jones falls more than 2% as trade war with China continues

Dow Jones falls more than 2% as trade war with China continues

Dow Jones falls more than 2% as trade war with China continues

Investors were unnerved by President Donald Trump's threats of tariffs on an additional US$100 billion in Chinese imports as the U.S. president hit out at China's "unfair retaliation" to a prior Trump announcement of US$50 billion in tariffs on Chinese goods. Technology shares led losses on Thursday, as investors grapple with the Federal Reserve's policy update from Wednesday, in which the central bank lifted rates by a quarter-point to a range of 1.50% and 1.75%, but signaled that it might be more aggressive in lifting rates in the coming years.

Bob Smith, president and chief investment officer at Sage Advisory Services Ltd Co in Austin, Texas, said the markets were going to react adversely to Trump's latest statement.

For the week, the Dow lost 170 points, or 0.7%, to 23,932.76.

The return of market volatility, fears of a trade war and the recent underperformance of some of the major indices' largest components have been a drag on stocks overall.

The Dow Jones Industrial Average fell 0.96 per cent to 24,271.17 and the Nasdaq Composite dropped 1.11 per cent to 6,998.10.

The Dow Jones industrial average fell 574 points, closing back in correction.

US President Trump said he is considering tariffs on an additional 100 billion dollars-worth of Chinese imports, and China has warned that it is ready to retaliate.

Stocks dipped further after Trump criticized the World Trade Organization on Twitter Friday morning.

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Kudlow, speaking to reporters shortly after the markets opened, said, "Now, we're not running a trade war".

"We're going to need brand new, bad news on trade for the equity markets to push lower".

Analysts said the market also responded to Federal Reserve Chair Jerome Powell, who said that the USA economy was growing and a turbulent stock market would not change the Fed's course to gradually raise interest rates. "The number of advancing stocks on the NYSE are outnumbering decliners 2,347 to 486, or by an 5-to-1 margin".

"I think these are all long term positive things that the president is willing to defend our interests", Mnuchin said. Caterpillar fell 3.5 percent. Still, Pride said all of the proposed tariffs add up to a pretty small fraction of trade between the US and China, and overall, they wouldn't affect the nation's economy that much if they do go into effect.

Still, she said businesses support the idea of making changes in America's trade relationship with China.

Wages grew 2.7 percent in March compared with a year earlier, in line with expectations.

Bond prices rose Friday, sending yields lower.

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