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 process itself seems to be quite chaotic", she said.

The Dow Jones Industrial Average .DJI fell 234.05 points, or 0.96 percent, to 24,271.17. It fell as much as 767 points.

S&P 500 e-mini futures EScv1 were down 1.4 percent in trading for the overnight session. The Nasdaq Composite .IXIC dropped 78.46 points, or 1.11 percent, to 6,998.10.

President Donald Trump's administration spent the past few days reassuring investors that it's not rushing into a trade war, and China's government has done the same.

Hedge fund manager Doug Kass, who runs Seabreeze Partners Management Inc, said he was shorting the Standard & Poor's 500."The hastily crafted policy like we have seen from Trump over the last two, three days and now tonight in a world that is flat and ever-more interconnected is unsafe". "The market has vacillated between writing it off as just talk and assuming there could be a serious problem", said Rick Meckler, president of investment firm LibertyView Capital Management in Jersey City, New Jersey.




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.

Investors said they were comforted by the fact that any tariffs would not take effect immediately, if at all.

Boeing and Caterpillar were still the biggest drags on the Dow due to their exposure to China, but well off their session lows by late afternoon.

Companies in the S&P 500 are projected to boost first quarter earnings by 17% from the year-earlier period. While the 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.

Nixon, of Northern Trust, said businesses also support the idea of making changes in America's trade relationship with China. Employers added 103,000 jobs last month, the weakest showing in months, and January and February's numbers were also revised lower. The unemployment rate remained low and the job market looks fundamentally healthy, but it's possible some employers are struggling to find workers.

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