Wall Street ends week on a negative note on escalating trade concerns
|- All major sectors except healthcare close in red on Friday.
- US President Trump points to additional tariffs on $267 billion worth of Chinese goods.
- Nasdaq suffers largest weekly percentage loss in three months.
Major equity indexes in the U.S. started the day slightly higher on Friday on the back of the upbeat employment report but came under pressure later in the session to end the day in the negative territory.
Earlier today, U.S. President Donald Trump talked to reporters on Air Force One regarding the trade conflict with China. “The $200 billion we are talking about could take place very soon depending on what happens with them. And I hate to say this, but behind that is another $267 billion ready to go on short notice if I want. That changes the equation,” Trump said according to Reuters. In the last hour of the session, Apple announced that many of their products were included on the list of the additional tariffs.
On the other hand, the U.S. Bureau of Labor Statistics reported that the unemployment rate remained steady at 3.9% and nonfarm payrolls rose by 201K in August following July's 147K growth. More importantly, annual wage growth advanced to its highest level in nearly a decade at 2.9%.
"Trump comments are one of those wild cards that spring out of the blue and take down the markets," Gary Bradshaw, a portfolio manager with Hodges Funds in Dallas, Texas, told Reuters.
The trade-sensitive S&P 500 Industrials Index lost 0.3% on the day and the S&P 500 Information Technology close 0.34% lower. The S&P 500 Health Care was the only major sector that ended the session in the positive territory on Friday.
The Dow Jones Industrial Average lost 74.72 points, or 0.29%, to 25,921.15, the S&P 500 dropped 5.82 points, or 0.2%, to 2,872.23 and the Nasdaq Composite erased 17.72 points, or 0.22%, to 7,905.01. For the week, these three major indexes fell 0.19%, 1.03%, and 2.55% respectively.
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