Breaking news: The Dow Jones industrial average closed down more than 700 points Thursday.
Markets dove Thursday amid fears President Trump’s new tariffs would start a global trade war, with the Dow Jones industrial average sliding sharply and the Nasdaq Composite and the Standard & Poor’s 500 index down as well.
Markets have been shaky for several weeks since the president announced a 25 percent tariff on imported steel and a 10 percent tariff on imported aluminum. Trump on Thursday announced about $50 billion in annual tariffs on imports from China. The Chinese reportedly are preparing a tit-for-tat response by placing tariffs on U.S. agricultural products that have big markets in China, such as soybeans.
Investors are fearful the trade policies and their fallout could tank a robust global economy and hamper the nine-year bull market.
“Trade tariffs are starting to emerge as a bigger market head wind than originally thought,” said Ivan Feinseth, director of research at Tigress Financial Partners. “The strong U.S. and global economic and fiscal policy tail winds are starting to be overtaken by the proposed tariffs, the Fed’s softer-then-expected economic outlook for 2018 and the fallout from the Facebook issue.”
Investors also reacted to moves by the Federal Reserve and Facebook’s troubles.
Stock Markets Tumble Amid Heightening Tensions Over Trade
Major indexes fell by more than 2 percent Thursday as investors began to take seriously the prospects of a trade war between the world’s two largest economies.