U.S. stocks opened lower on Friday, amid signs that trade tensions between the U.S. and China were escalating, with multiple retaliations between the two countries, and after a weaker-than-expected read on the labor market.
The Dow Jones Industrial Average fell 1%, or 230 points, to 24,271. The S&P 500 shed 19 points, or 0.7%, to 2,644. The Nasdaq Composite Index dropped 75 points, or 1.1%, to 7,001. With the day's decline, the Nasdaq turned lower for the week, falling 0.8%. The Dow remains up 0.7% for the week while the S&P is up 0.1%.
The day's weakness came a day after President Donald Trump said he was considering more tariffs on Chinese goods, the latest indication that trade-related tensions between the two countries were escalating. Among the biggest decliners of the day, Boeing Co. fell 1.7% while Caterpillar Inc. was off 0.8%. Both stocks are seen as having an outsize issues to trade issues, especially given their revenue exposure to China. Also driving trading was the March payroll report, which showed 103,000 jobs added in the month, compared with the 185,000 that had been expected. While the report was well below forecasts, it may be taken as a positive if it results in the Federal Reserve being less aggressive in raising interest rates.
Source : Marketwatch