Dow Plunges Anew After Trump Tweets on China

Index falls more than 600 points
By Newser Editors and Wire Services
Posted Aug 23, 2019 3:03 PM CDT
Dow Plunges Anew After Trump Tweets on China
Traders Gregory Rowe, left, and Michael Milano work on the floor of the New York Stock Exchange.   (AP Photo/Richard Drew, File)

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.

(More stock market stories.)

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