WASHINGTON (dpa-AFX) - Stocks have shown another substantial move to the downside during trading on Friday, extending the nosedive seen in the previous session. With the continued plunge, the major averages have tumbled to their lowest intraday levels since early last August.
The major averages have seen further downside in recent trading, hitting new lows for the session. The Nasdaq is down 744.48 points or 4.5 percent at 15,806.13, the S&P 500 is down 223.46 points or 4.1 percent at 5,173.06 and the Dow is down 1,469.57 points or 3.6 percent at 39,076.36.
The extended sell-off on Wall Street comes amid ongoing concerns about a global trade war after China announced retaliatory tariffs on U.S. goods in reaction to President Donald Trump's new levies.
China's finance ministry announced a 34 percent tariff will be imposed on all imported goods originating from the U.S. beginning on April 10th.
The new tariff matches the 'reciprocal tariff' Trump plans to impose on China, although the country will face a 54 percent effective rate when the new levies are combined with existing duties.
The ministry called Trump's tariff plan a 'typical unilateral bullying practice' that is 'inconsistent with international trade rules.'
'China urges the United States to immediately cancel its unilateral tariff measures and resolve trade differences through consultation in an equal, respectful and mutually beneficial manner,' the ministry said, according to a Google translation.
Responding to the news in a post on Truth Social, Trump argued China 'played it wrong' and 'panicked,' calling the move 'the one thing they cannot afford to do.'
Canada and the European Union are also preparing countermeasures, leading to concerns about a trade war that could fuel inflation and damage the global economy.
Traders have largely shrugged off a typically closely watched Labor Department report showing employment in the U.S. surged by much more than expected in the month of March.
The Labor Department said non-farm payroll employment jumped by 228,000 jobs in March after climbing by a downwardly revised 117,000 jobs in February.
Economists had expected employment to rise by 135,000 jobs compared to the addition of 151,000 jobs originally reported for the previous month.
Meanwhile, the report said the unemployment rate crept up to 4.2 percent in March from 4.1 percent in February. The unemployment rate was expected to remain unchanged.
'Unfortunately, the market is no longer focused on the jobs market and focused squarely on tariffs and trade wars as the US plays chicken with the rest of the world, potentially beginning a downward spiral into a worldwide recession,' said Chris Zaccarelli, Chief Investment Officer for Northlight Asset Management.
Later this morning, Federal Reserve Chair Jerome Powell is scheduled to speak on the economic outlook at the Society for Advancing Business Editing and Writing's annual conference.
Sector News
Gold stocks have shown a particularly steep drop on the day, resulting in an 8.0 percent nosedive by the NYSE Arca Gold Bugs Index.
The sell-off by gold stocks comes amid a sharp decline by the price of the precious metal, with gold for June delivery tumbling $57.30 to $3,064.40 an ounce.
Oil producer stocks are also seeing substantial weakness amid a steep drop by the price of crude oil, dragging the NYSE Arca Oil Index down by 7.8 percent to its lowest intraday level in well over a year.
Considerable weakness is also visible among brokerage stocks, as reflected by the 7.4 percent plunge by the NYSE Arca Broker/Dealer Index.
Airline, banking and semiconductor stocks are also showing significant moves to the downside amid another broad-based sell-off on Wall Street.
Other Markets
In overseas trading, stock markets across the Asia-Pacific region moved mostly lower on Friday, with markets in Hong Kong and mainland China closed for a holiday. Japan's Nikkei 225 Index dove by 2.8 percent, while Australia's S&P/ASX 200 Index slumped by 2.4 percent.
The major European markets have also shown substantial moves to the downside. While the German DAX Index is down by 4.7 percent, the U.K.'s FTSE 100 Index is down by 4.5 percent and the French CAC 40 Index is down by 4.2 percent.
In the bond market, treasuries are extending the spike seen in the previous session. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is down by 14.3 basis points at 3.912 percent.
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