Dow closes 350 points lower after Trump threatens Mexico tariffs
Stocks ended sharply lower Friday as investors feared President Donald Trump’s surprise threat of tariffs on all Mexico imports, amid a worsening trade war with China, could risk sending the U.S. economy into a recession.
The Dow closed 354 points lower, while the S&P 500 slid 1.3%. The Nasdaq dropped 1.5%. The S&P 500 ended the month down 6.6% as volatility spiked after trade talks fell apart with China and rhetoric on both sides worsened in May.
“President Trump’s latest trade bombshell . . . might turn out to be a short-lived threat that is quickly defused by commitments on border security, but it nonetheless looks damaging at a number of levels,” Krishna Guha, the head of global policy and central bank strategy at Evercore ISI, wrote in a note. “At the big picture level, it suggests that Trump trade policy might well mean a permanent state of endemic uncertainty and instability in the global trading system not simply a hard-headed sequential re-set of prior arrangements that started with Mexico and proceeds via China to Europe and Japan.”
Friday’s declines added to a torrid week and month for stocks. The Dow dropped 3% this week and notched its sixth straight weekly loss. That’s the longest weekly losing streak for the Dow since 2011. The S&P 500 and Nasdaq posted their fourth straight weekly loss. The major indexes also snapped a four-month winning streak.
https://www.msn.com/en-us/money/markets/dow-closes-350-points-lower-after-trump-threatens-mexico-tariffs/ar-AAC9Vmt
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