Tariff Fears and a Jobs Report Send Stocks Lower

S&P 500 Bears Make Way for Bulls

Dow tumbles on trade war fears

U.S. stock futures fell more than 1 percent late on Thursday after U.S. President Donald Trump said he had instructed U.S. trade officials to consider $100 billion in additional tariffs on China.

That has investors anxious, because the U.S. Federal Reserve continues to hike interest rates.

Trump's top economic advisers have sought to temper fears of a trade war, calling the president's actions part of an effort to reach fairer trade terms with China.

"It's a reaction to concerns about the administration's approach to trade".

"The stock market is in a bit of a tug of war", says Allen Bond, portfolio manager of the Jensen Quality Growth Fund.

"Investors breathed a sigh of relief", Stovall said.

"If the market is down it often tends to accelerate on Friday".

Earlier this week, the Trump administration announced plans for tariffs on $50 billion worth of Chinese goods in retaliation for China's alleged theft of United States intellectual property. So, I'm not saying there won't be a little pain, but the market's gone up 40 percent, 42 percent - so we might lose a little bit of it - but we're going to have a much stronger country when we're finished.

Chipmakers, which as a group rely on China for about a quarter of their revenue, also declined.

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.

Economic data on Thursday showed the USA trade deficit increased to a near 9-1/2-year high in February, but the shortfall with China narrowed sharply.

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.

"The Chinese side will follow through to the end and will not hesitate to fight back at any cost", the Chinese Commerce Ministry said in a statement Friday. It was his first speech on the economic outlook since taking over as chairman on February 5. The Labor Department also said fewer jobs were added in January and February that it initially estimated. While annual growth in average hourly earnings rose to 2.7 percent, it stayed below the 3 percent that economists estimate is needed to lift inflation toward the Federal Reserve's 2-percent target.

The stock market changed direction again and again this week as investors tried to get a sense of whether the trade dispute between the world's two largest economies will escalate. It's down 1.3 percent for the week. The S&P closed below that level for the first time since June 2016 on Monday, but it subsequently rebounded above it.

Advancing issues outnumbered decliners on the NYSE for a 2.76-to-1 ratio and on the Nasdaq for a 1.90-to-1 ratio.

Nine of the 11 major S&P sectors were higher, led by a 1.2 percent gain on the material.SPLRCM and the energy.SPNY indexes.

About 7.2 billion shares changed hands on USA exchanges.

Kathmandu Holdings Limited (KMD.AX) has watched the Triple Exponential Moving Average (TEMA) of it's share price trend higher over the past 5 session.

Latest News