The major Wall Street indexes recorded declines during the Friday trading session after the US President Donald Trump said the US is ready to impose additional during on Chinese goods with annual turnover of 267 billion USD.
The blue chip index Dow Jones Industrial Average dropped by 79 points to 25,916.54 points. Dow broke its winning streak in the last three weeks.
The broader index S&P 500 declined by 0.22% to 2,871.69 points, with utilities and real estate declining by more than 1%. The index marks its first negative week in five weeks.
The technology index Nasdaq Composite also finished in red territory with a fall of 0.25% to 7,902.54 points, following a decrease in Apple, Amazon and Alphabet stocks. This is the fourth consecutive day of decline in the technology benchmark, which happens for the first time since April, and its worst start for September since 2008.
Nasdaq Composite fell by 2.6% for the week, and the S&P 500 and Dow lost 1% and 0.2% respectively.
Earlier on Friday, the US President Donald Trump said that additional duties on Chinese imports are ready to take effect at his request. His statement came after last night was the deadline for commenting on customs duties on Chinese goods worth 200 billion USD.
“The 200 billion USD we are talking about could take place very soon depending on what happens with them. To a certain extent it’s going to be up to China”, said Donald Trump. “And I hate to say this, but behind that is another 267 billion USD ready to go on short notice if I want. That totally changes the equation”, added he.
Apple’s stock declined by 0.6% after it was reported that the company had informed the US authorities that proposed duties on Chinese goods would affect a number of its products.
Wall Street was also under pressure because of strong earnings data that fueled fears of tightening monetary policy in the United States. Average hourly wage increased by 2.9% yoy in August, the largest leap since 2009. The US economy added 201,000 new jobs last month, a bigger than expected increase of 191,000 places.
The Federal Reserve has already raised interest rates twice this year and is expected to increase it twice more by the end of the year.
Tesla’s stocks fell by 9% after chief accounting officer Dave Morton quit. Morton said in a statement that he had left for “the level of public attention to the company”.
In bond markets, strong job data increased the yields on 10-year and 30-year US government bonds to 2.939% and 3.102%, respectively.
On the forex markets, the dollar index, which measures the value of the US currency against a basket of six major currencies, rose by 0.38% to a level of 95.39 points.
In commodity markets, the crude oil prices are down in a third consecutive session against the backdrop of a strong dollar, stock market weakness, and the more limited than expected effects of Tropical Storm Gordon on oil production in the Gulf of Mexico. The futures on the US light crude WTI fell by 0.02 USD to 67.75 USD per barrel. The price of the international benchmark Brent rose by 0.71% to 77.04 USD per barrel. The WTI is about to mark a weekly decline of more than 3.5%, while Brent’s loss will be 1.6%.
The futures on gold are down by 3.90 USD to 1,200.40 USD per ounce.