Meanwhile, the U.S. labor market has remained resilient.
U.S. stocks fall for the second consecutive day on Friday after the Trump administration announced a series of global tariffs.
The Dow Jones Industrial Average dropped more than 2,200 points, or 5.5 percent. The blue-chip index registered a weekly loss of 8 percent and is down 10 percent this year.
The Nasdaq Composite Index, a tech-heavy benchmark, was down by about 950 points, or 5.8 percent. Year-to-date, it has dropped more than 18 percent and is approaching a bear market—a 20 percent decline from its record high.
The broader S&P 500 erased more than 300 points, 6 percent. It has dipped 13 percent this year and recently slipped into correction territory, which is defined as a 10 percent drop from its peak.
The Russell 2000, an index of small-cap stocks, fell 4 percent on Friday and was down 8.5 percent this week. It became the first U.S. stock benchmark to fall into a bear market.
U.S. Treasury yields fell as investors sought shelter. The benchmark 10-year declined toward 4 percent.
China’s Retaliation
The Chinese regime matched President Donald Trump’s April 2 tariffs.
This week, the U.S. president imposed 34 percent reciprocal tariffs on China, bringing the total rate to 54 percent.
China’s Ministry of Commerce then imposed 34 percent tariffs on U.S. goods entering China, effective April 10.
Beijing’s retaliatory levies were part of a plethora of other response measures. China announced export controls on several types of heavy and medium rare earth minerals, such as gadolinium, samarium, and terbium. The regime also added 11 U.S. firms to its “unreliable entities list.”
China’s Commerce Ministry said in a statement that the purpose of the export controls is to “better safeguard national security and interests, and to fulfill international obligations such as non-proliferation.”
Beijing also filed a complaint with the World Trade Organization, alleging that the United States is violating the institution’s rules.
Asian stocks also ended the trading week lower. Japan’s Nikkei 225 was down by about 1,000 points, or 2.75 percent. The Hang Seng Index plummeted 352 points, or 1.52 percent. The Shanghai Composite Index slipped 0.24 percent.
By Andrew Moran
