Dow closes down more than 500 points continuing dismal streak for stock market

The Dow more than 500 points, or 2.4 percent, Friday afternoon. The Nasdaq plunged 3 percent, while the S&P 500 retreated 2.4 percent.

Stocks had been trading higher earlier Friday, but the market turned sharply lower later in the day.

Advertisement

Investors also received a softer jobs report than expected Friday. The Labor Department said the United States added 155,000 jobs in November, missing expectations for a gain of 200,000. But the labor news did not trigger a sell-off and some traders likely figured the slowdown in hiring will reduce pressure on the Federal Reserve to raise interest rates.

Worries about the negative consequences of the trade war and hopes for progress have launched Wall Street on a wild ride of late. The U.S.-China ceasefire sent stocks soaring on Monday. But doubts about the truce helped knock the Dow nearly 800 points into the red on Tuesday. Then the Dow plunged 785 points Thursday before staging a huge comeback.

“It doesn’t feel like much of a ceasefire,” said Ed Yardeni, president of investment advisory Yardeni Research.

Senior administration officials have alternated between good-cop and bad-cop on the trade front.

Kudlow told CNBC Friday that the trade talks with China are “extremely promising.”

Kudlow, director of Trump’s National Economic Council, said that Trump has indicated he might be willing to extend the 90-day negotiating window if there’s “good, solid movement and good action.”

Navarro struck a different tone on CNN. Asked whether the administration would walk away if issues with China are not resolved within 90 days, Navarro suggested Trump would “simply raise” existing tariffs on $200 billion worth of Chinese goods.

If China fails to change its ways on trade, “We have a president that’s going to stand up to that for once,” Navarro said.

Navarro

Read More Here...

Bookmark the permalink.