US stocks tumble on trade war fears, Dow loses 1.7%
Traders work on the floor of the New York Stock Exchange. (Spencer Platt/Getty Images/AFP)
NEW YORK: Wall Street stocks fell sharply on Thursday (Mar 1) after President Donald Trump said he will enact steep tariffs on steel and aluminium imports, reviving worries of a trade war.The Dow Jones Industrial Average lost 420.22 points (1.68 per cent) to close at 24,608.98.The broad-based S&P 500 dropped 36.24 points (1.34 per cent) to 2,677.59, while the tech-rich Nasdaq Composite Index fell 92.45 points (1.27 per cent) to 7,180.56.Trump's comments on tariffs injected additional uncertainty at a time when investors are already edgy over the prospect of higher interest rates, said Briefing.com analyst Patrick O'Hare."Investor sentiment is shaky," said Briefing.com analyst Patrick O'Hare. "It's not a good thing for the market to get into some kind of trade war."Unusually, the first day of the month attracts new funds, O'Hare said. "You're not seeing any willingness to buy yesterday's selloff," he added.
Trump's announcement on tariffs came shortly after a Senate hearing with Federal Reserve chief Jerome Powell at which he said future interest rates would be gradual and allow the economy to expand.Markets fell on Tuesday and Wednesday on worries about Fed policy following Powell's appearance before a House panel on Tuesday.
Source : http://www.channelnewsasia.com/news/business/us-stocks-tumble-on-trade-war-fears-dow-loses-1-7-10004884