Stocks fall on trade war fears, sending the S&P 500 to its worst week of 2019

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All 3 major U.S. indices fell today after President Trump stoked trade fears with the announcement of more tariffs on China while investors digested U.S. employment data. The S&P dropped 0.72% and Nasdaq slipped 1.32%.

slid 1.3% to close at 8,004.07. The major indexes dipped below their 50-day moving averages, key technical levels watched by investors.

Caterpillar and Deere, two stocks associated with trade because of their overseas revenue exposure, both fell more than 1.5%. The VanEck Vectors Semiconductor ETF dropped 1.4%, led by a 4.2% decline in Skyworks Solutions.the 10% charge would be imposed on $300 billion worth of Chinese goods. The levy will take effect starting September 1. Trump said later on Thursday he was open to shelving that tariff if China stepped up its U.S. agricultural purchases.

China's foreign ministry pushed back against Trump's latest tariff threat on Friday morning, reportedly saying the world's largest economy should give up its illusions, shoulder some responsibility and come back to the right track on resolving the trade war. John Augustine, chief investment officer at Huntington Private Bank, highlighted the consumer discretionary and tech sectors have fallen sharply this week. "The market is anticipating this could affect U.S. consumer spending, which we have seen strengthening recently," he said.The U.S. economy added 164,000 jobs in July, just below a Dow Jones estimate of 165,000. The job gains pushed the size of the U.S. labor force to a record high.

 

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