By STAN CHOE,
AP Business Writer
YORK (AP) — U.S. stocks sank sharply in another dizzying day of trading
after President Donald Trump promised stiff tariffs on imported steel and
aluminum, which investors feared could lead to retaliation by other
countries and higher inflation.
Standard & Poor's 500 index was down 29 points, or 1.1 percent, at 2,684, as
of 3:25 p.m. Eastern time. If it stays there, it would be the third straight
loss for the index of at least 1 percent, when it had a total of only four
during all of last year.
Dow Jones industrial average dropped 366, or 1.5 percent, to 24,669. It was
down as much as 586 earlier. The Nasdaq composite fell 72, or 1 percent, to
Indexes had been bouncing between modest gains and losses earlier in the
day, until Trump told industry executives that they'll "have protection for
the first time in a long while" and that next week he would level penalties
of 25 percent on steel imports and 10 percent on aluminum imports.
don't know if this will cause a trade war, and obviously that's the fear,"
said Lamar Villere, portfolio manager at investment manager Villere & Co.
"But this is exactly what candidate Trump said he would do: He said he would
be very protectionist and America-first."
European Commission President Jean-Claude Juncker says the EU will take
retaliatory action if Trump goes ahead with his plan to slap tariffs on
steel and aluminum imports.
candidate, Trump often campaigned on an "America First" trade policy, but
hadn't taken many steps to implement that since he took office.
big fear for investors has been that increasingly nationalistic governments
will throw up barriers that will hurt the global economy and trade, as well
as profits for U.S. exporters. The biggest U.S. company by market value,
Apple, got 63 percent of its sales last fiscal year from foreign markets.
While shares of steelmakers surged, with U.S. Steel up $2.53, or 5.8
percent, to $46.05, stocks of companies that use lots of steel fell. So did
shares of exporters.
Industrial companies in the S&P 500 fell 1.8 percent for one of the sharpest
losses among the 11 sectors that make up the index. Heavy equipment maker
Caterpillar lost $4.58, or 3 percent, to $150.05 and aerospace giant Boeing
gave back $10.99, or 3 percent, to $351.22.
prices rose as stocks fell, which pushed yields lower. The yield on the
10-year Treasury note dipped to 2.81 percent from 2.86 percent late