Stock dive as trade tensions heat up between U.S. and China

Stock dive as trade tensions heat up between U.S. and China

Stock dive as trade tensions heat up between U.S. and China

U.S. stocks recouped some losses on Friday morning after President Donald Trump's top economic adviser Larry Kudlow said negotiations between the United States and China over trade differences would start soon.

Chipmakers, many of which have the highest revenue exposure to China among S&P 500 companies, also fell.

He said in a Friday morning interview that tariffs targeting China could cause some "pain" in the US economy, but promised that America would emerge stronger as a result.

"The process itself seems to be quite chaotic", she said. "We're not quite sure what the long-term strategy is".

The Dow fell more than 500 points on Friday, a drop of more than 2%, after President Trump threatened to escalate a confrontation with China over trade. In the absence of new all-time highs, stock fans on bear watch should be waiting for the 21,293.37 level in the Dow and 2,298.30 in the S&P.

The Dow Jones Industrial Average advanced 239.33 points, or 1.0% to 24,503.77 after swinging 741 points in Wednesday's highly volatile session. The Nasdaq composite dropped 2.1 percent.

China announced fresh tariffs on 106 United States products on Wednesday. But late Thursday, President Donald Trump ordered the U.S. Trade Representative to consider placing tariffs on an additional $100 billion worth of Chinese imports. China said it would "counterattack with great strength" if he that happens.

Stocks dipped further after Trump criticized the World Trade Organization on Twitter Friday morning.

National Economic Council Director Larry Kudlow (http://www.marketwatch.com/story/kudlow-trump-taking-moderate-approach-to-china-tariffs-2018-04-06), appearing on Bloomberg TV on Friday, said the administration was only considering adding "tariff pressures", and that he hoped there would be negotiations in the next couple of months.

Still, Mr Pride said all of the proposed tariffs add up to a pretty small fraction of trade between the USA and China, and overall, they would not affect the nation's economy that much if they do go into effect.

Economic data on Thursday showed the US trade deficit increased to a near 9-1/2-year high in February, but the shortfall with China narrowed sharply. We were badly represented. "The WTO is unfair to U.S". Boeing and Caterpillar, considered vulnerable in any trade war with China, fell by 3.1% and 3.5%, respectively.

Canada's main stock index fell in a broad-based decline that was led by energy and financial shares as renewed U.S.

Germany's DAX was down 0.5 percent while France's CAC-40 fell 0.3 percent lower.

Jason Pride, chief investment officer for Glenmede's private client business, said Mr Trump's latest order caught investors off guard.

"I feel like this is a typical reaction, but I think that it will come back around", said Zach Holt.

However, the U.S. Department of Labor said today (April 6) that only 103,000 jobs were created.

The pullback got here amid one other spurt larger in Treasury bond yields, a focus for traders involved that the Fed could speed up charge hikes if inflation rises all of a sudden.

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