US stocks traded lower on Thursday as news that President Donald Trump would propose trade duties on China imports stoked fresh fears about a potential trade war between two of the world's largest economies that could impede domestic economic expansion in roughly its ninth year.
The Dow again traded in a broad range, rising as much as 358 points in morning trading before giving up most of those gains. It fell modestly for the week. Caterpillar (CAT.N) declined 2.8 percent and Deere (DE.N) dropped about 2.3 percent.
That came with the USA considering duties on an additional $100 billion in goods imported from China.
The Dow recovered some of its worse losses to end down 2.3 percent at 23,932.
Automakers Ford, General Motors, Fiat Chrysler and Tesla fell between 2 percent and 4 percent. The Nasdaq composite slid 161.44 points, or 2.3 percent, to 6,915.11. Still, Pride said all of the proposed tariffs add up to a pretty small fraction of trade between the USA and China, and overall, they wouldn't affect the nation's economy that much if they do go into effect.
USA stocks extended losses and the S&P 500 hit a session low in Friday afternoon trading after Federal Reserve Chairman Jerome Powell said the US central bank will likely need to keep raising interest rates to keep inflation under control.
Shares of chemicals and mining companies, some of which have stumbled since the steel and aluminium tariffs were first unveiled, were also in demand. Among technology companies, Apple gave up $4.42, or 2.6 percent, to $168.378 and PayPal shed $3.09, or 4 percent, to $73.86. It fell 0.7 percent for the week. Only two of the most active USA stocks premarket were higher.
Wall Street's three major indexes staged a comeback to close around 1 percent higher on Wednesday as investors turned their focus to earnings and away from a trade conflict between the United States and China that wreaked havoc in earlier trading.
The market has been on a bumpy ride this week as traders try to get a sense of whether a trade dispute between the two nations will escalate.
Hedge fund manager Doug Kass, who runs Seabreeze Partners Management Inc, said he was shorting the Standard & Poor's 500."The hastily crafted policy like we have seen from Trump over the last two, three days and now tonight in a world that is flat and ever-more interconnected is unsafe". Direxion Daily S&P 500 Bull 1.25X Shares has a 12 month low of $30.17 and a 12 month high of $40.38.