Trader Fred DeMarco (left) works with colleagues in a booth on the floor of the New York Stock Exchange. Photo / AP
U.S. stocks tumbled, sending the S&P 500 Index to its biggest weekly loss in more than two years, on concern that a trade war and higher borrowing rates could throttle global growth. Oil surged on speculation sanctions on Iran will be re-imposed.
The Dow Jones Industrial Average slumped for a
third consecutive day, led by losses in companies as diverse as 3M Co. to Goldman Sachs Group Inc. The S&P 500 dropped to its lowest since the volatility-fueled meltdown in early February. Gold rallied and Treasury yields declined as investors sought safe havens.
The S&P 500 Index's late Friday (Saturday morning NZT) tumble saw cascading losses wipe almost US$1 trillion ($1.3t) from global equity markets.
Global markets were caught in a risk-off mode after China announced retaliation against President Donald Trump's proposed tariffs announced Thursday. China's ambassador to the U.S. wouldn't rule out the possibility of the Asian nation scaling back purchases of Treasuries in response to the tariffs.
It's been a miserable week for higher-risk markets globally, as a trade war edged closer, the tech sector was roiled by Facebook Inc.'s privacy scandal and data showed European growth sputtering. Traders had already been bracing for the possibility of slowing expansion as the Federal Reserve reiterated its commitment to further interest-rate increases after Wednesday's hike.
