The Magnificent 7 stocks slide again and the Dow drops 1,400 points as China retaliates in trade war
The S&P 500 index fell 4.3% as of late-morning Friday, with the Nasdaq Composite dropping 4.6% and the Dow Jones Industrial Average shedding 1,428 points, or 3.5%
Equities markets had their worst day in five years on Thursday as the S&P 500 plunged 4.8%, the Nasdaq Composite plummeted 6%, and the Dow Jones Industrial Average shed 4% after President Donald Trump imposed tariffs that were more severe than expected.
On Friday, Beijing imposed imposed 34% tariffs on all American goods, matching Trump's duties, and took other measures, including restricting exports of some rare earth materials and barring some U.S. companies from doing business in China. The European Union has yet to announce its retaliation.
Trump said via social media on Friday that his 'POLICIES WILL NEVER CHANGE' after insisting on Thursday afternoon that 'it's going very well' and that 'the markets are going to boom' along with the country.
Employers added 228,000 jobs in March on a seasonally adjusted basis, rising from a downwardly revised 117,000 in February and beating the average estimate of 130,00. The jobless rate nonetheless increased to 4.2% from 4.1%, and hourly wages increased 0.30%, both matching projections.
One half of the Federal Reserve's dual mandate is maintaining full employment — the other half is controlling inflation — so better-than-expected employment growth may decrease the odds of it cutting interest rates. Economists have warned that the labor market could deteriorate quickly, however.
Fed Chair Jerome Powell is scheduled to speak on the economic outlook at 11:25 a.m. EDT.
Nvidia (NVDA) fell 4.3% and Apple (AAPL) dropped 2.7%. Declines in the other Mag 7 stocks were 3.7% for Meta (META), 3.9% for Amazon (AMZN), 5.6% for Tesla (TSLA), 2.3% for Microsoft (MSFT), and 1.5% for Google parent Alphabet (GOOGL).
Shoe and garment makers extended their sell-off as they face tariffs on their Asian-made products. Nike (NKE) fell 4.5%, Lululemon (LULU) slid 4.9%, and Uggs-maker Deckers (DECK) declined 6.4%. Energy companies, including Exxon Mobil (XOM), Chevron (CVX), and ConocoPhillips (COP), declined on recession fears.
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