Dow Jones falls more than 2% as trade war with China continues

S&P 500 Bears Make Way for Bulls

But late Thursday, Trump ordered the U.S. Trade Representative to consider tariffs on another $100 billion in Chinese imports.

The combination of the hiring slowdowns and modest wage growth temporarily eased Wall Street's concerns that the economy was getting too hot.

That has investors anxious, because the U.S. Federal Reserve continues to hike interest rates.

Investors fear a trade war because it will restrict the flow of goods between the nations, which will not only hurt sales and corporate profits but also dent investor confidence. The Dow opened more than 240 points lower, a 1 percent drop, while the Nasdaq fell 0.9 percent and the S&P index dropped 0.8 percent.

Global stock indexes rose Thursday as investors around the world grew more optimistic that a trade dispute between the USA and will resolve without much damage.

The probabilities of a recession in the last half of 2019 and early 2020 are increasing in odds and maybe quite dramatically, Kass added, saying: "The bottom line is that our president is going to make market volatility and economic uncertainty great again".

Economists forecast that the United States economy gained 185,000 jobs in March, which would be another solid gain after the 313,000 jobs created in February. The US still shows the tightest labor market in almost two decades.




Until investors hear back from CEOs, the Trump Administration, China, the World Trade Organization, and lobbyists in Washington about whether or not they can proceed without worry of a tariff fight between two economic superpowers, the markets will likely continue to spike and drop, with little rhyme or reason for specific changes.

Larson said that low liquidity is helping amplify market moves.

Earlier in the day, stocks were hit after the latest United States jobs report missed targets.

Among shares of industrial and materials firms, CF Industries Holdings Inc.

Caterpillar, a construction equipment maker, shed $4.58, or 3.1 per cent, to $143.55 while farm equipment company Deere sank $3.46, or 2.3 per cent, to $147.88. Short seller Citron Research on Thursday tweeted that it sees shares falling below $200 soon. The company admitted it made a "huge mistake" in not focusing more on potential abuse of users' personal information. The retailer also said it would overhaul its job-screening guidelines.

Asian stocks had a mixed day (http://www.marketwatch.com/story/asian-markets-waver-after-trumps-latest-broadside-against-china-2018-04-05), with the Hong Kong Hang Seng Index rising 1% on bets that the latest Trump tariff threat may not develop into any real issue. Natural gas rose 3 cents to $2.70 per 1,000 cubic feet. The market didn't get any help from a March jobs report that was weaker than expected.

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