Dow Tumbles 700 Points on Trump's Tariff Threat, Weak Jobs Report

Dow Tumbles 700 Points on Trump's Tariff Threat, Weak Jobs Report

Blame "Tariff Tantrum 2.0" for the latest stock market swoon.

Boeing and Caterpillar, considered vulnerable in any trade war with China, fell by 3.1% and 3.5%, respectively.

With the Dow Jones Industrial Average now frequently dipping into correction territory, the minds of many traders and investors are turning to the question of how long before this bull run - the longest in Dow history post-World War II - becomes a full-on bear market.

"Escalation of the U.S". While exports to China were unchanged in February, imports from the country declined 14.7 percent.

The Dow Jones industrial average closed 572 points lower, a 2.3 percent decrease, while the Nasdaq and S&P 500 index dropped 2.3 percent and 2.2 percent, respectively.

For the week, the Dow was down 0.7%.

US Treasury Secretary Steve Mnuchin in an interview on CNBC said he was cautiously hopeful the United States will reach an agreement with China on trade.

Trump announced Thursday night that his administration would consider imposing $100 billion more in tariffs on Chinese goods. The earlier tariff threats roiled financial markets but stocks had rebounded Thursday on investor hopes that the parties would find a diplomatic solution. "Now we only have one issue to deal with, and that's trade". But the drop resumed shortly thereafter as traders searched for clarity on trade with tensions quickly escalating between the US and China.

The administration was running a "good cop, bad cop kind of negotiating strategy", said Sam Stovall, chief investment strategist at CFRA Research. "However, negotiations could take months".

The probabilities of a recession in the last half of 2019 and early 2020 are increasing in odds and maybe quite dramatically, Kass added, saying: "The bottom line is that our president is going to make market volatility and economic uncertainty great again".

The Chinese government responded by reiterating that it doesn't want "to fight a trade war, but we are not afraid of fighting it".

Stocks were mostly unaffected by the March jobs report, which showed that the US economy added 103,000 positions, down from a much bigger gain in February and well below what analysts were expecting.

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