Stocks – Dow Erases Gains for Year on Tech, Trade Turmoil

© Reuters. © Reuters. – The Dow closed sharply lower for the week after plunging Friday on a weak jobs report and concerns over U.S-China trade tensions.

The fell 2.24%. The fell 2.35%, while the fell 3.05%.

U.S.-China trade tensions were thrown into further turmoil after President Donald Trump’s trade adviser Peter Navarro said if issues with China are not resolved during the 90-day ceasefire, the administration would raise existing tariffs on $200 billion worth of Chinese goods.

White House economic advisor Larry Kudlow, however, offered a more sanguine outlook, telling CNBC that Trump would consider extending the 90-day tariff truce with China if progress is made in talks.

But Kudlow’s remarks did little to allay concerns as investors abandoned trade sensitive corners of the market like industrials.

Industiral heavyweights Boeing (NYSE:), 3M (NYSE:) and Caterpillar (NYSE:), all of which have strong international exposure, were under pressure, accelerating downside momentum in the broader market.

Tech also contributed meaningfully to the selloff on Wall Street, led by Apple after Morgan Stanley cut its price target on the tech giant’s shares on fears over a slowing smartphone market in China.

Morgan Stanley cut its price target on Apple (NASDAQ:) to $236 from $253, citing supply-chain conversations in Asia that revealed a weaker backdrop for smartphone demand. That was the third Apple price cut this week following cuts by both Rosenblatt and HSBC, sending Apple’s share price more than 3% lower.

Facebook (NASDAQ:), (NASDAQ:), Netflix (NASDAQ:) and Alphabet (NASDAQ:) also closed lower.

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