Wall Street drops after Trump threatens further China tariffs

Reuters  |  NEW YORK 

By April Joyner

Trump's remarks came after the comment period regarding another round of tariffs, on $200 billion worth of Chinese imports, ended on Thursday night. Earlier, said Trump would not make any decisions on those tariffs until officials evaluated public comments.

Additionally, Trump said the and have begun trade discussions.

The and the Dow had opened lower as the U.S. Labor Department's employment report showed accelerating job growth and a surge in wage growth. Though the report indicated a strong economy, it raised concerns among investors regarding inflation and the Federal Reserve's plans for increasing interest rates.

After Trump's comments on tariffs, both indexes added to losses, while the Nasdaq, which had been boosted by a recovery in tech stocks, gave up its gains. The three indexes recovered some of their losses later in the session.

Several investors said the unsettled stance on trade contributed to U.S. stocks' meandering path on Friday.

"It's not that we have good policies or bad policies; it's that we don't know what the policy is," said Brian Battle, at in "It's very fickle."

"It's kind of a tempest in a teapot, more than anything," said Michael Antonelli, at in "I wouldn't be surprised to see us end the day flat."

The <.DJI> fell 55.27 points, or 0.21 percent, to 25,940.6, the <.SPX> lost 2.25 points, or 0.08 percent, to 2,875.8 and the <.IXIC> dropped 3.01 points, or 0.04 percent, to 7,919.72.

Eight of the 11 S&P sectors were lower. Consumer discretionary <.SPLRCD>, health care <.SPXHC> and financial <.SPSY> stocks posted modest gains.

The was trading flat after being shellacked in the last two sessions over concerns regarding the possibility of increased regulation of companies.

Shares of chipmaker rose 7.5 percent after a strong current-quarter revenue forecast.

shares slid 6.4 percent following reports of two executives leaving the company and on mounting investor concerns about Elon Musk's behaviour after he smoked marijuana on a

Declining issues outnumbered advancing ones on the NYSE by a 2.26-to-1 ratio; on Nasdaq, a 1.24-to-1 ratio favoured decliners.

The S&P 500 posted 36 new 52-week highs and 16 new lows; the recorded 95 new highs and 62 new lows.

(Reporting by April Joyner; Additioanl reporting by in Bengaluru; Editing by and Dan Grebler)

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

First Published: Sat, September 08 2018. 01:04 IST