Stocks Dip After China Announces Retaliatory Tariffs on U.S. Goods
Dow Jones industrial average and S&P 500 futures had been up slightly as investors awaited a speech by Jerome H. Powell, the Federal Reserve chair, on Friday that they hoped would clarify whether the central bank would cut interest rates again next month as has been widely expected.
But both indexes slid into negative territory at the start of trading after China’s government announced that it would retaliate against the Trump administration’s plans for two batches of tariffs on $300 billion in Chinese imports, on Sept. 1 and Dec. 15, with levies on $75 billion of American imports on the same schedule.
European markets, which rose in early trading on Friday, also tumbled after the tariff announcement by the State Council Tariff Commission in Beijing. The Euro Stoxx 50, the CAC 40 in France and the Dax index in Frankfurt were all down about 0.4 percent. Bucking the trend, the FTSE 100 in London was up 0.1 percent.
Asian markets ended trading mostly higher.