US stock indexes opened lower on Friday as renewed fears of a trade conflict between the United States and China outweighed a lower-than-expected March jobs data that eased concerns over aggressive interest rate hikes. The S&P 500 and the Nasdaq each declined more than 2%.
World stock markets slid Friday after Beijing vowed to fight back against the Trump administration's latest threats of yet more tariffs on Chinese imports, renewing investor fears of a brewing trade battle between the world's two biggest economies.
Beijing hit back against US plans to impose tariffs on $50 billion in Chinese goods, with proposals for a list of similar duties on key American imports including soybeans, planes, cars, beef and chemicals.
U.S. stocks recouped some losses this morning after President Donald Trump's top economic adviser Larry Kudlow said negotiations between the United States and China over trade differences would start soon.
Some analysts pointed to comments by recently-installed White House economic advisor Larry Kudlow who suggested President Donald Trump's strident approach to China was a negotiating tactic to win concessions. Eastern time. Earlier it fell as much as 620 points. Online retailer Amazon gave up $26.81, or 1.9 percent, to $1,364.85.
Eight of the 11 major S&P sectors were lower, led by a 0.6 per cent drop in financial stocks as the case for further rate hikes dimmed after soft jobs data.
Negative sentiment was also generated by a report from the Labor Department showing USA job growth slowed by much more than anticipated in the month of March.
Pakistan delegations to highlight Kashmir situation worldwide: PM Abbasi
He also asked the global community to urge India to allow access to fact finding missions of the United Nations to Kashmir. They stressed that diplomatic efforts needed to be enhanced to sensitize the global community.
"Our view remains that a negotiated solution is most likely, and so the tariffs ultimately won't be implemented or will be much milder if they are", said Shane Oliver, head of investment strategy at AMP Capital in Sydney.
But economists say a trade war would drag down growth for the US and other countries in a number of ways. The U.S. economy has been humming along with a strong job market, while Brazil just a year ago emerged from its punishing recession and growth in the euro area has reached its highest level in a decade.
The Dow Jones industrial average lost 346 points, or 1.4 percent, to 24,158.
Overnight, China announced it's putting a 25 percent tariff on 106 USA -made products, including soybeans, corn, aircraft and automobiles.
The yield on the 10-year Treasury fell to 2.78 percent.
Nonfarm payrolls increased by 103,000 last month, the Labor Department said, the fewest in six months, but a pickup in wage gains pointed to a tightening labor market. Apple lost 1.4 percent and Boeing fell 2.6 percent.
The energy group fell 1.4 per cent as crude oil prices tumbled.
Gold, becoming an investor safe haven once again, is gaining by $8 to 1,336 an ounce. The Philadelphia semiconductor index fell 3.1 per cent.
The dollar fell to 106.86 yen from 107.12 yen.