Stocks finished lower Friday after President Trump’s threat of higher tariffs on Mexican imports blindsided investors. Traders feared the unexpected tariff hike could derail trade negotiations…
Stocks finished lower Friday after President Trump’s threat of higher tariffs on Mexican imports blindsided investors.
Traders feared the unexpected tariff hike could derail trade negotiations with other countries, and, in the worst case, help usher in a recession.
« We’re in the middle of tariff 2.0, » said Jamie Cox, managing partner at Harris Financial Group. « Markets tend to react badly when things come out of left field. »
The Dow Jones industrial average dropped 355 points, or 1.4%, to end at 24,815. The Standard & Poor’s 500 lost almost 36 points, or 1.3%, to close at 2,752. The tech-heavy Nasdaq fell nearly 115 points, or 1.5%, to finish at 7,453.
Investors instead poured money into the 10-year Treasury – considered less risky during times of uncertainty. Its yield dropped to around 2.14% in afternoon trading, the lowest in 20 months, as bonds rallied. Bond yields and prices move in opposite directions.
The tumult started Thursday evening when Trump tweeted that the U. S. would impose a 5% tariff on all Mexican goods coming into the United States starting June 10 until the country’s government addressed illegal immigration on the southern border.
