Stocks dive as US proposes more China tariffs; Dow falls 700
NEW YORK (AP) — Stocks are ending the week the way they began it: tumbling as investors worry that tariffs and harsh words between the U.S. and China will touch off a trade war that derails the global economy. That came with the U.S. considering duties on an additional $100 billion in goods imported from China.
The stock market has changed direction again and again this week as investors tried to get a sense of whether a trade dispute between the two nations will escalate. Technology companies, banks, industrial and health care stocks are sinking. The market didn’t get any help from a March jobs report that was weaker than expected.
The Dow Jones industrial average dropped 704 points, or 2.9 percent, to 23,801 as of 3 p.m. Eastern time.
The S&P 500, which many index funds track, lost 69 points, or 2.6 percent, to 2,593. The Nasdaq composite slid 177 points, or 2.5 percent, to 6,899. The Russell 2000 index of smaller-company stocks dipped 37 points, or 2.4 percent, to 1,505.
The administration spent the past few days reassuring investors that it’s not rushing into a trade war, and China’s government has done the same. But late Thursday, President Donald Trump ordered the U.S. Trade Representative to consider placing tariffs on an additional $100 billion worth of Chinese imports. China said it would “counterattack with great strength” if that happens.
Stocks dipped further after Trump criticized the World Trade Organization on Twitter Friday morning and the losses worsened in the afternoon.