White House instability’s effect on stocks
Dow Jones Newswires chief editor Glenn Hall, The Stock Swoosh founder Melissa Armo and FBN’s Charlie Gasparino discuss the effect of the Trump administration’s policies and instability on the market.<br>
Trade war concerns with China and another White House resignation has stock futures pointing to another potential selloff when trading in the U.S. begins.
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Dow Jones futures were pointing to a triple-digit decline equal to 0.64%. The S&P 500 futures were lower by 0.48% and the Nasdaq Composite was off 0.78%.
President Trump shook up his foreign policy team again on Thursday, replacing H.R. McMaster as national security adviser with John Bolton, who has advocated using military force against North Korea and Iran.
The move came little more than a week after Trump fired Rex Tillerson as secretary of state and nominated Central Intelligence Agency Director Mike Pompeo to replace him.
Stocks suffered heavy losses on the afternoon the Trump administration announced new tariffs, valued at $50 billion, on Chinese goods targeting 1,300 items.
The Dow Jones Industrial Average lost 724.42 points, or 2.93%, slipping to 23,957.89. The S&P 500 dropped 68.24 points, or 2.52%, to 2,643.69. The Nasdaq Composite fell 178.61 points, or 2.43%, to 7,166.68.
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The Dow is now down 9.99% from its recent high, just shy of the 10% mark that signifies a correction.
China is already retaliating by announcing plans to impose tariffs on $3 billion in U.S. products such as steel, pork and wine.
China and Hong stocks opened sharply lower on Friday.
The Shanghai Composite index was down 3.3% . The Hang Seng was off 2.8%.
Japan’s Nikkei also tumbled to its lowest level since mid-October on concerns over escalating global trade tensions that triggered a spike in the yen.
The Nikkei closed down 4.5%, ending the week down 4.9%, its largest weekly percentage fall since early February.
On the U.S. economic calendar, investors will get the latest data on durable goods and new home sales.
