58 Views

Dow falls 1 percent as trade war fears hurt industrials

© Reuters. FILE PHOTO - Traders work on the floor of the NYSE in New York© Reuters. FILE PHOTO – Traders work on the floor of the NYSE in New York

By Ankur Banerjee

(Reuters) – The Dow industrials fell more than 1 percent for a fourth straight day on Friday on mounting fears of a global trade war following President Donald Trump’s promise to impose import tariffs on steel and aluminum.

EU sources told Reuters the European Union was considering applying 25 percent tariffs on around $3.5 billion of imports from the United States if Trump carries out his plan to apply global duties to steel and aluminum.

All but eight of the 70 members of the broader S&P industrial index (SPLRCI) were lower, reflecting fears that the costs of their raw materials will rise along with barriers to their trade outside of the United States.

Declines since Trumps announcement on Thursday have turned the Dow negative for the year. Shares of Boeing (N:BA) Caterpillar (N:CAT) and 3M (N:MMM) were among the biggest drags on the index.

“The (tariff) announcement has also come at a time when investor sentiment is already fragile,” Oanda senior market analyst Craig Erlam wrote in a note.

“For someone so obsessed with stock market performance, he’s taking a big gamble with these tariffs, the benefits of which are questionable.”

U.S. Commerce Secretary Wilbur Ross played down the fears saying “hysteria over tariffs is a lot to do over nothing.”

The move however comes at a time when markets are already on edge over rising U.S. interest rates and bond yields.

“We’ve had tariffs put in place for aluminum and steel before, the market always finds a place through it,” said Michael Mattioli, portfolio manager at Manulife Asset Management.

“What would be more concerning is, if it’s going to be broad-based and not just steel and aluminum, but something to do with China or intellectual property.”

At 10:51 a.m. ET, the Dow (DJI) was down 1.2 percent at 24,312.68. The S&P 500 (SPX) fell 0.63 percent to 2,660.9 and the Nasdaq Composite (IXIC) dropped 0.49 percent to 7,145.05.

World stocks also tumbled on Friday, with investors flocking towards traditional safe havens including Japan’s yen and gold.

J.C. Penney Co Inc (N:JCP) shares plunged 8.7 percent after the department store chain missed same store sales estimates.

Foot Locker (N:FL) shares were down 16 percent after the footwear retailer posted disappointing quarterly results.

Declining issues outnumbered advancers on the NYSE by 1,979 to 767. On the Nasdaq, 1,579 issues fell and 1,155 advanced.

sponsoredArticle = ‘div-gpt-ad-1466339494851-0’;

Get the best viral stories straight into your inbox!

Don't worry, we don't spam

Latest Posts

Factbox: Trump on Twitter (February 7) – Korea, FBI, Budget
Politics
140 views
Politics
140 views

Factbox: Trump on Twitter (February 7) – Korea, FBI, Budget

WPUser - March 2, 2018

© Reuters. U.S. President Trump delivers speech after touring Sheffer Corporation in Blue Ash, Ohio The following statements were posted to the verified Twitter accounts of U.S. President…

Economics
129 views

President Trump’s Economic Policies Show He’s Still “King of Debt”

WPUser - March 2, 2018

Investing.com - President Trump proudly considered himself the "king of debt" during his days as a businessman, and he has already earned that moniker as president. The…

White House senior aide to resign following abuse charges
Politics
114 views
Politics
114 views

White House senior aide to resign following abuse charges

WPUser - March 2, 2018

© Reuters. FILE PHOTO: Porter hands document to Trump during signing ceremony in the Oval Office in Washington WASHINGTON (Reuters) - U.S. White House staff secretary Rob…

Russia set for rating review by S&P, Fitch, upgrade in prospect
Economics
112 views
Economics
112 views

Russia set for rating review by S&P, Fitch, upgrade in prospect

WPUser - March 2, 2018

© Reuters. View shows Russian rouble coins and banknote By Andrey Ostroukh MOSCOW (Reuters) - Russia may get a long-awaited upgrade to its sovereign ratings this week…

U.S. senators express optimism about NAFTA after Trump meeting
Politics
131 views
Politics
131 views

U.S. senators express optimism about NAFTA after Trump meeting

WPUser - March 2, 2018

© Reuters. Senator Orrin Hatch (R-UT) arrives for a vote after the Senate reached an agreement to end the shut down of the federal government on Capitol…

Global regulators neutral on new rules for ‘hyped’ fintech
Economics
131 views
Economics
131 views

Global regulators neutral on new rules for ‘hyped’ fintech

WPUser - March 2, 2018

© Reuters. Global regulators neutral on new rules for 'hyped' fintech By Huw Jones LONDON (Reuters) - Global banking regulators signaled on Monday they were in no…

Sharp increase in reports of sexual assault at elite U.S. Army academy
Politics
140 views
Politics
140 views

Sharp increase in reports of sexual assault at elite U.S. Army academy

WPUser - March 2, 2018

© Reuters. Sharp increase in reports of sexual assault at elite U.S. Army academy WASHINGTON (Reuters) - There was a sharp rise in reports of sexual assault…

Fourth tranche of aid to Greece should be decided on Monday: France
Economics
142 views
Economics
142 views

Fourth tranche of aid to Greece should be decided on Monday: France

WPUser - March 2, 2018

© Reuters. French Finance Minister Bruno Le Maire attends a conference on "Transforming France’s Economy and Completing the Integration of the Eurozone" in Paris BRUSSELS (Reuters) -…

Senate panel sets confirmation hearing for four FTC nominees
Politics
139 views
Politics
139 views

Senate panel sets confirmation hearing for four FTC nominees

WPUser - March 2, 2018

© Reuters. The Federal Trade Commission building is seen in Washington By Diane Bartz WASHINGTON (Reuters) - The U.S. Senate Commerce Committee set confirmation hearings next week…

Australia says open to UK joining Pacific trade group after Brexit
Economics
110 views
Economics
110 views

Australia says open to UK joining Pacific trade group after Brexit

WPUser - March 2, 2018

© Reuters. Australian Foreign Minister Bishop addresses the 72nd United Nations General Assembly at U.N. headquarters in New York By Andy Bruce LONDON (Reuters) - Australia said…