Stocks sold off on Wall Street on Friday as traders continued to flee to safer assets, particularly government bonds, the Japanese yen and the Swiss franc. Risk aversion set in as the United States and China sharpened the rhetoric around comprehensive bilateral negotiations.
President Donald Trump said he would roll out 10% import tariffs for the remaining merchandise from the world’s second-largest economy, worth $300 billion on an annual scale. The upcoming round of levies, which he threatened to lift to 25% will particularly hit consumers.
Sentiment also suffered with sharp downward revisions in May’s new orders for manufacturing goods and the core reading for durable goods, which strips out defense and aircraft.
The Dow Jones Industrial Average was off 1% or more than 250 points at 10:45 am ET. Cisco was the worst stock, 3.8% in the hole. The Nasdaq 100 sunk 1.69%, led by the 18.8% fall in NetApp. The S&P 500 was off 1.1%. The euro advanced 0.16% to $1.1003. The greenback slumped 0.66% to ¥106.637 and 0.69% to 0.9835 francs.