Dow plunges more than 550 points as week ends

Dow sinks 500 points upon open as US, China issue new tariffs

Dow sinks 500 points upon open as US, China issue new tariffs

The stock market changed direction again and again this week as investors tried to get a sense of whether the trade dispute between the US and China, the world's two largest economies, will escalate.

U.S. stocks tumbled Friday, with the Dow Jones industrial average falling more than 700 points, or about 3% at its lowest point, as fears of a global trade war continued to mount.

The S&P 500 index dropped 58.37 points, or 2.2%, to finish at 2,604.47, with all 11 main sectors trading in negative territory. Boeing and other industrial companies rely heavily on overseas sales and could suffer greatly if global commerce is curtailed by rising trade barriers.

Fed Chair Powell, meanwhile, signalled that the U.S. central bank still plans to press ahead with additional interest rate hikes in 2018, a stance that also disappointed investors. Apple lost 2 percent and JPMorgan Chase gave up 2.9 percent. The Dow opened more than 240 points lower, a 1 percent drop, while the Nasdaq fell 0.9 percent and the S&P index dropped 0.8 percent.

The S&P 500 fell 56 points, or 2.1 percent, to 2,607.

"As long as the trade spat continues, markets are going to be jittery", said Charlie Ripley, senior investment strategist for Allianz Investment Management.

At the start of the week, the US and China each proposed tariffs on $50 billion in imports from the other.

U.S. stocks ended the week with deep selloff, leaving them lower the for the five days as the White House's latest trade bluster rattled global financial markets.

Stocks tumbled Friday as trade tensions between the United States and China heated up.

The Dow average, which contains numerous multinational companies including industrial powerhouses Boeing and Caterpillar, has swung dramatically this week, with about 1,300 points separating its lowest point Monday afternoon from its high late Thursday. U.S. oil stocks fell 2.3% on fears Beijing could restrict crude exports.

At the start of the week, the US announced plans to put tariffs on $50 billion in goods imported from China, and the Chinese government responded with measures of equal size.

"China, which is a great economic power, is considered a Developing Nation within the World Trade Organization", the president tweeted on Friday. 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.

To make things worse, the USA economy added fewer jobs than expected in March, according to a government report released Friday morning. PayPal dipped $1.88, or 2.4 per cent, to $75.07.

BONDS: Bond prices rose, sending yields lower. The lower yields mean banks can't make as much money from lending, and that send bank stocks lower. Natural gas rose 3 cents to $2.70 per 1,000 cubic feet.

Gold futures (http://www.marketwatch.com/story/gold-slips-ahead-of-jobs-report-little-traction-gained-from-stock-retreat-2018-04-06) edged higher, up 0.5% to $1,335 an ounce.

The dollar fell to 106.86 yen from 107.12 yen. The Dow was down 430 points, or 1.8%, at 24,250, in recent trade. The euro rose to $1.2287 from $1.2256. It fell 0.7 percent for the week.

In Europe, the Stoxx Europe 600 Index fell 0.4 per cent, paring a weekly gain to 1.1 per cent, while The MSCI All-Country World Index fell 1.2 per cent.

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