Finance

Renewed trade tensions send stocks lower

Renewed trade tensions send stocks lower

The U.S. -based credit rating agency Standard & Poor's (S&P) said Wednesday that despite the global credit outlook being stable, global geopolitical risks remained high, which predominantly stemmed from escalating tensions between the world's two largest economies, the U.S. and China.

If current gains for S&P 500 hold, it would be the best three-day run since Trump's election victory in November 2016.

Canada's main stock index fell in a broad-based decline that was led by energy and financial shares as renewed U.S.

The S&P 500, which many index funds track, lost 53 points, or 2 percent, to 2,608.

The S&P 500 fell 56 points, or 2.1 percent, to 2,607. But stocks turned higher and the Dow finished with a gain of 230 points as officials in both countries reassured investors that they are willing to talk and aren't rushing into a trade war that could hurt global economic growth and company profits. USA 10-year Treasury yield was last down 2.75 basis points at 2.76 percent, while gold prices went up more than 1 percent.

The fluctuations followed an announcement by President Trump Thursday that he was considering $100 billion in tariffs on Chinese exports on top of what he had already imposed.

"The market is getting more concerned about the possibility of a trade war between the U.S. and China", said Tom Cahill, portfolio strategist at Ventura Wealth Management. He noted that the US hasn't entered a full-blown trade war since 1930, and trade relationships were much different back then. Apple gained $1.78, or 1 percent, to $173.39. The yield on the 10-year Treasury note rose to 2.83 percent from 2.81 percent.

Stocks are opening lower after President Donald Trump proposed more tariffs on Chinese goods. The Dow was down 430 points, or 1.8%, at 24,250, in recent trade.

Industrial companies were especially hard hit by the escalation in trade tensions Friday.

The first reason the stock market is down today is because of the March 2018 jobs report. Employers added 103,000 jobs last month, the weakest showing in months, and January and February's numbers were also revised lower. Brent crude, used to price worldwide oils, rose 30 cents to $68.32 per barrel in London.