Stocks Sink, Bonds Gain as U.S.-China Feud Deepens: Markets Wrap
- Trump says he’s raising tariffs on China after its retaliation
- Powell warns of ‘significant risks,’ hardening rate-cut bets
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U.S. stocks slumped and Treasuries rallied as the trade dispute between the world’s two largest economies deepened. The dollar fell.
After the close of regular trading, President Donald Trump confirmed he’ll boost tariffs on Chinese imports in response to Beijing’s retaliation. The SPDR S&P 500 ETF Trust was little changed following the announcement. Prospects for heightened tension rattled markets Friday, overshadowing speculation that the Federal Reserve will cut rates after Chairman Jerome Powell’s remarks. Energy and tech stocks led losses in the S&P 500 Index, and the Dow Jones Industrial Average tumbled 623 points as only Boeing Co. rose among the gauge’s 30 blue-chip companies. The Nasdaq-100 Index plunged more than 3%.