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Wall Street losses rise as trade concerns mount; all 30 Dow components fall

As on Wednesday, industrials led the decliners; Boeing, the single largest U.S. exporter to China, fell 2.5 percent


Wall street, market
A broker looks at financial information on computer screens | Photo: Reuters

US stocks tumbled on Friday on fears of an escalating trade war between the and after threatened to slap $100 billion more in tariffs and Beijing warned it would fight back "at any cost."

In light of China's "unfair retaliation" against earlier US trade actions, Trump upped the ante by ordering US officials to identify extra tariffs, escalating a high stakes tit-for-tat confrontation.

Commerce Ministry said the two countries have not recently held any negotiations, which are impossible under current conditions.

"The market was weak from get-go. It was an uncomfortable state to begin with, clearly the reaction from to tariffs is clearly the only factor driving the today," said Randy Frederick, vice of trading and derivatives for in

After the initial round of tariffs earlier this week, the took comfort from Trump's top Larry Kudlow's comments that was involved in a negotiation with China rather than a trade war.

Kudlow told CNBC Friday he learnt of the new tariffs only last night. He told TV that negotiations had not yet started, but later said on Fox Business that talks are ongoing.

Kudlow's comments on ongoing negotiations and a tepid March jobs report, which eased fears of faster interest rate hikes, had helped the market recoup some losses earlier in the day.

But that boost was short lived.

At 11:09 a.m. ET, the was down 371.57 points, or 1.52 percent, at 24,133.65, the was down 31.67 points, or 1.19 percent, at 2,631.17 and the was down 77.83 points, or 1.1 percent, at 6,998.72.

All 30 were in the red and each of the 11 S&P sectors were lower, with the and falling the least.

As on Wednesday, industrials led the decliners. Boeing, the single largest U.S. exporter to China, fell 2.5 percent. declined 1.3 percent and dropped about 2 percent.

Chipmakers, which as a group rely on China for about a quarter of their revenue, also declined. The index fell 1.45 percent.

Nonfarm payrolls increased by a fewer-than-expected 103,000 last month, a Labor Department report showed. While the annual increase in average hourly earnings rose to 2.7 percent, it stayed below the 3-percent that economists say is needed to lift inflation toward the Federal Reserve's 2-percent target.

"That's not showing us wage inflation where the Fed would have to step in. This seems to be a natural improvement," said Sean Lynch, co-head of global equity strategy, Institute in Omaha,

Declining issues outnumbered advancers on the NYSE for a 2.81-to-1 ratio and for a 2.47-to-1 ratio favoring decliners on the Nasdaq.

First Published: Fri, April 06 2018. 22:37 IST