ZCZC
BCN-08
US-STOCKS-MARKETS
US stocks fall on latest Trump trade threat on China
NEW YORK, Sept 8, 2018 (BSS/AFP) – Wall Street stocks dropped Friday after
President Donald Trump threatened to impose tariffs on all imports from
China, escalating an ongoing trade fight.
The Dow Jones Industrial Average fell 0.3 percent to close the week
25,916.54, improved from the worst level of the day, while the broad-based
S&P 500 shed 0.2 percent to 2,871.68.
The tech-rich Nasdaq Composite Index declined 0.3 percent to end at
7,902.54, and is down 2.6 percent for the week.
The US has punitive tariffs on $50 billion in Chinese goods already in
place, and another $200 billion “in the hopper” that Trump said “could take
place very soon.”
But Trump told reporters on Air Force One that “there’s another $267
billion ready to go on short notice if I want.”
That would cover virtually all the goods imported from the world’s second
largest economy.
Although stocks hit session lows just after the remarks were reported, the
major indices cut their losses before the close.
“If there were dramatic worries (about the trade war) you would see the
market down even more, but it isn’t,” said Quincy Krosby, chief market
strategist of Prudential Financial.
“The major question would be: is the US economy strong enough to absorb
these rates?”
US stocks opened mixed after the September jobs report topped expectations
on new positions added. However, some analysts expressed anxiety after
stronger-than-expected wage growth boosted the odds of more aggressive
Federal Reserve interest rate hikes.
Among individual companies, Tesla Motors fell 6.3 percent after a pair of
executive departures added to uncertainty surrounding the electric car maker
a day after chief executive Elon Musk appeared in an interview smoking
marijuana.
BSS/AFP/HR/0930