Stocks skid as trade war worsens with new tariff threats

first_imgNEW YORK — Global stock indexes are sinking Wednesday after the Trump administration released a list of $200 billion in goods that could be hit with tariffs and China said it would retaliate. The dollar is getting stronger and exporters including industrial and materials companies are sinking. Oil prices are also plunging.KEEPING SCORE: The S&P 500 index lost 22 points, or 0.8 percent, to 2,771 as of 2:15 p.m. Eastern time. The Dow Jones Industrial Average dropped 247 points, or 1 percent, to 24,671. The Nasdaq composite fell 50 points, or 0.7 percent, to 7,709. The Russell 2000, an index of smaller and more U.S.-focused companies, gave up 12 points, or 0.7 percent, to 1,683.The S&P 500 had risen for four days in a row and it closed at a five-month high Tuesday.TARIFF THREATS: The Trump administration proposed a 10 percent tax on imported items including vacuum cleaners, furniture and car and bicycle parts, but not U.S.-branded smartphones and laptops. It is scheduled to make a decision on the potential tariffs after Aug. 31.China’s government said it will take “firm and forceful measures” if the new tariffs are enacted. Chipmakers, which make large portions of their sales in China, took some of the worst losses. Nvidia fell 2.3 percent to $247.41 and Micron Technology lost 3 percent to $54.08.Among industrials, Caterpillar lost 3.6 percent to $136.11 and farm equipment maker Deere lost 2.4 percent to $141.01.THE QUOTE: Jack Ablin, chief investment officer for Cresset Wealth Advisors, said the tariffs threaten to slow the global economy by raising costs for consumers and making businesses less productive.last_img read more