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The stock market was pounded for a second day Friday after China retaliated with new tariffs on U.S. goods, sparking fears President Donald Trump has ignited a global trade war that will lead to a recession.
The Dow Jones Industrials fell without a parachute, 2,231.07 points, or 5.5%, to close the day and the week at 38,314.86.
The S&P 500 index dropped 322.44 points, or 6%, to 5,074.08. The benchmark shed 4.84% on Thursday and is now off 17% off its recent high. All told, the S&P 500 dropped nearly 9% on the week, its worst week since the breakout of Covid in early 2020.
The NASDAQ let go of 962.82 points, or 5.8%, to 15,587.79. The measure is 22% lower than its December record, a bear market in Wall Street terminology.
China’s commerce ministry said Friday the country will impose a 34% levy on all U.S. products. This matches the tariff on Chinese goods coming into the U.S. unveiled by President Donald Trump on Wednesday.
Technology stocks led the bleeding Friday. Shares of iPhone maker Apple slumped 7%, adding to a 13% loss for the week. Artificial intelligence bellwether Nvidia pulled back 7%, while Tesla fell 10%. All three companies have large exposure to China and are among the hardest hit from Beijing’s retaliatory duties.
Outside of tech, Boeing and Caterpillar — big exporters to China — led the Dow lower, Boeing falling 9% and Caterpillar shrinking 5%.
The closely watched jobs report for March gave investors a mixed picture of the U.S. economy. Nonfarm payrolls expanded by 228,000 last month, while economists polled by Dow Jones forecast an increase of 140,000.
The unemployment rate inched up to 4.2%, however. Trump touted the report on Friday in a Truth Social post as an example that his tariff policy is already yielding his desired results.
Prices for the 10-year Treasury rose sharply, lowering yields to 4% from Thursday’s 4.06%. Treasury prices and yields move in opposite directions.
Oil prices lost $4.31 to $62.64 U.S. a barrel.
Prices for gold paled $62.30 to $3,059.40 U.S.