NEW YORK—US stocks plunged more than two percent Friday (Saturday in Manila) after President Donald Trump warned of tariffs on an additional $100 billion of Chinese imports, provoking a strong response from Beijing and fanning fears of a full-blown trade war.
Investors were unnerved by the latest broadside from the volatile US president and by China’s strident response, which vowed Beijing would stand firm “until the end at any cost.”
“The market is getting more concerned about the possibility of a trade war between the US and China,” said Tom Cahill, portfolio strategist at Ventura Wealth Management.
“The market does not like uncertainty and right now we have a lot of it.”
The Dow finished down 2.3 percent at 23,932.76, with all 30 members ending in the red. The S&P 500 and tech-rich Nasdaq indices also lost more than two percent.
The barbs over trade overshadowed a lackluster jobs report, which placed US jobs growth at 103,000 in March, well below analyst expectations. Unemployment held steady at 4.1 percent.
European equity markets also retreated, but not as severely, with Paris, Frankfurt and London falling half a percentage point or less.
Asian stocks mostly receded on Friday. Tokyo finished in the red, losing 0.4 percent. There were also losses for Seoul and Sydney, while Shanghai was shut.