Wall Street defends key line of defense amid Trump-China trade war


Boeing, among the hardest-hit stocks on Wednesday after China retaliated with $50 billion in tariffs on USA goods, rose 2.7 percent, giving the Dow its biggest boost, followed by Goldman Sachs, up 1.3 percent.

"The prospect of a trade war is understandably spooking investors, but we expect that cooler heads will prevail, and that any tariffs imposed will not pose a sustained threat to economic activity or financial markets", Scott Clemons, chief investment strategist at Brown Brothers Harriman, told Barron's in email.

The Dow Jones Industrial Average .DJI fell 565.49 points, or 2.31 percent, to 23,939.73, the S&P 500 .SPX lost 53.08 points, or 1.99 percent, to 2,609.76 and the Nasdaq Composite .IXIC dropped 134.34 points, or 1.9 percent, to 6,942.21.

The Dow Jones and S&P 500 each made all-time highs earlier this year of 26,616.71 and 2,872.87, respectively.

At the start of the week, the US announced plans to put tariffs on $50 billion in goods imported from China, and the Chinese government responded with measures of equal size. Here's the latest from Barron's reporters.

The next chart highlights that the 10-year yield has spent the majority of the past 25-years inside of a falling channel.

Boeing, the single largest US exporter to China, fell 1.12 percent.

The trade tensions overshadowed the latest U.S.jobs report, which showed hiring cooled by more than forecast in March. Still, Pride said all of the proposed tariffs add up to a pretty small fraction of trade between the USA and China, and overall, they wouldn't affect the nation's economy that much if they do go into effect. The Labor Department also said fewer jobs were added in January and February that it initially estimated.

Amazon rose 2.9 percent after being repeatedly hammered this week by Trump's attacks on the online retailer. The yield on the 10-year Treasury fell to 2.77 percent from 2.83 percent. The euro rose to $1.2285 from $1.2256.

The selloff in USA stocks deepened Friday as the White House's latest trade bluster rattled global financial markets.