Stocks sank on Wall Street Friday after President Trump demanded that US companies with operations in China consider moving them to other countries—just hours after Beijing announced new tariffs on $75 billion in American goods. The Dow fell 623 points, or 2.3%, to 25,628; the S&P 500 fell 75 points, or 2.5%, to 2,847; and the Nasdaq dropped 239 points, or 3%, to 7,751. The developments mark the latest escalation of an ongoing trade dispute, per the AP. The US has said it would impose 10% duties on the $300 billion of Chinese goods that were not already subject to tariffs in two steps, on Sept. 1 and Dec. 15. Early Friday, China said it would retaliate with taxes on $75 billion of US products along the same time frame.
The broad sell-off wiped out all the market's gains this week, sending the S&P 500 to its fourth straight weekly loss. The benchmark index is down about 4% for the month. The market opened lower with the news of the new tariffs. It recovered a bit after a widely anticipated speech by Jerome Powell where the chairman of the Federal Reserve gave no clear signal on when the central bank may cut interest rates again after a small cut last month. Trump also lashed out at Powell, wondering whether he or China's leader was the bigger "enemy" for America.
(Read more stock market