Dow sinks 500 points upon open as US, China issue new tariffs

Dow sinks 500 points upon open as US, China issue new tariffs

Dow sinks 500 points upon open as US, China issue new tariffs

Shares of Boeing (BA.N) and Caterpillar (CAT.N), among the worst hit on Wednesday after China retaliated with $50 billion in tariffs on USA goods such as soybeans, autos, and some types of aircraft, rose 1.7 percent and 3 percent. Oil prices dropped Wednesday in part because investors were nervous that a trade war would slow down growth in the global economy, which would reduce demand for oil.

The first reason the stock market is down today is because of the March 2018 jobs report. The Nasdaq composite slid 135 points, or 1.9 percent, to 6,940.

April 5 is a positive day so far for Rex Gold Hedged S&P 500 ETF (NYSEARCA:GHS) as the ETF is active during the day after gaining 0.953% to hit $32.515 per share.

The Dow Jones Industrial Average was sitting pretty at the end of January.

The Dow fell 588 points, or 2.4 percent, at 23,909. It's down 0.7 percent for the week.

While traders see opportunity in volatility, Polcari reminded long-term investors to "eliminate that noise and continue to focus on their portfolio". Resurgent protectionist talk, with the Trump administration planning to announce new import duties against China, has renewed concerns about a potential trade conflict between two of the world's economic powerhouses. China said it would "counterattack with great strength" if he that happens.

Technology companies, banks and industrial stocks were falling the most in midday trading Friday.

Trump said late Thursday that he was considering tariffs on $100 billion more in Chinese exports, which would triple what the United States is already planning.

Fed Chair Powell, meanwhile, signalled that the U.S. central bank still plans to press ahead with additional interest rate hikes in 2018, a stance that also disappointed investors.

"Markets are forced to confront the idea that rates are going up and the stock market is not going to derail that process", McMillan said. "We're not quite sure what the long term strategy is". That creates "exaggerated moves", he said.

Anxiety returned to Wall Street after three days of gains. Optimism about the world economy has helped many tech companies make huge gains in the a year ago.

E-mini Dow Jones Industrial Average
Daily June E-mini Dow Jones Industrial Average

Automakers Ford, General Motors, Fiat Chrysler and Tesla fell between 2 percent and 4 percent.

Facebook (FB.O) share were down 1.3 percent.

In the USA, financials (-0.8%), industrials (-0.7%) and health care (-0.6%) are early laggards.

Caterpillar dropped 3.5 percent, the most in the Dow.

Health care companies also declined.

Tech shares mostly climbed, with biotechnology companies such as Amgen, Biogen, Celgene and Gilead Sciences all gaining more than two percent.

Trump said the market turmoil was short-term "pain", but insisted the outcome would leave the U.S.in a better position. Brent crude, used to price worldwide oils, rose 30 cents to $68.32 per barrel in London.

Bond prices rose, sending yields lower. The lower yields mean banks can't make as much money from lending, and that send bank stocks lower.

Gold was down 0.8% at $1,329.00. Nike picked up 92 cents, or 1.3 percent, to $69.34. About 268 of the S&P 500 components were lower.

USA stocks closed higher on Thursday as tech shares rose following a roller coaster ride in the previous trading day.

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