Wall Street Tumbles on Renewed Trade Fears, Oil Plunge

wall street tumbles on renewed trade fears oil plunge
Wall Street Tumbles on Renewed Trade Fears, Oil Plunge

U.S. stocks ended down on Friday on worries over an escalating trade dispute between the United States and China, but indexes closed well off the day’s lows.

The Dow Jones Industrial Average fell 84.83 points, or 0.34 percent, to 25,090.48, the S&P 500 lost 3.07 points, or 0.11 percent, to 2,779.42, and the Nasdaq Composite dropped 14.66 points, or 0.19 percent, to 7,746.38.

The Dow was down nearly 270 points at one point.

U.S. President Donald Trump unveiled an initial list of strategically important goods that would be subject to a 25 percent tariff effective July 6, and China’s Commerce Ministry responded with its own list of U.S. imports targeting soybeans, aircraft, autos and chemicals.

The two countries have held several rounds of talks since early May but have yet to result in a deal, as the United States pressures China to narrow a $375 billion trade deficit.

“The market’s selling off, though not drastically, mostly on renewed fears of a trade war,” said Peter Tuz, president of Chase Investment Counsel in Charlottesville, Virginia. “Maybe people are just getting used to the rhetoric and stepping off of it a little bit.”

Boeing (BA) shares were down 1.2 percent on the news. The planemaker is the single largest U.S. exporter to China.

Tariff-sensitive construction equipment maker Caterpillar (CAT) and chemical company DowDupont (DWDP) were down 2.2 percent and 0.6 percent, respectively.

Of the 11 major sectors of the S&P 500 four were in negative territory.

The energy sector was the biggest percentage loser, down 1.7 percent as oil prices tumbled more than 3 percent ahead of next week’s OPEC meeting.

Declining issues outnumbered advancing ones on the NYSE by a 1.34-to-1 ratio; on Nasdaq, a 1.08-to-1 ratio favored decliners.

The S&P 500 posted 19 new 52-week highs and 4 new lows; the Nasdaq Composite recorded 119 new highs and 33 new lows.

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