Tariff Fears and a Jobs Report Send Stocks Lower

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United States stock futures fell more than 1 per cent late on Thursday after President Donald Trump said he had instructed U.S. trade officials to consider $100 billion in additional tariffs on China.

The Dow Jones industrial average fell 574 points, closing back in correction.

Canada's main stock index fell in a broad-based decline that was led by energy and financial shares as renewed U.S.

Trump, in a statement, said he proposed the additional tariffs "in light of China's unfair retaliation" against earlier US actions that included $50 billion of tariffs on Chinese goods.

The S&P 500 on Thursday headed for its best three-day rise since President Donald Trump's election as technology and industrial shares bolstered a recovery on easing trade war concerns. The S&P 500 added 1.2% and the Nasdaq gained 1.5%.


Caterpillar, a construction equipment maker, shed $584, or 3.9 percent, to $142.29 while farm equipment company Deere sank $5.56, or 3.7 percent, to $145.79. Johnson & Johnson sank $2.99, or 2.3 percent, to $127.72 and health insurer

The government reported that US employers added 103,000 jobs in March, a weaker pace than the last few months.

However, the U.S. Department of Labor said today (April 6) that only 103,000 jobs were created. The unemployment rate remained low and the job market looks fundamentally healthy, but it's possible some employers are struggling to find workers.

"China, which is a great economic power, is considered a Developing Nation within the World Trade Organization", the president tweeted on Friday. U.S. oil stocks fell 2.3% on fears Beijing could restrict crude exports. While annual growth in average hourly earnings rose to 2.7 percent, it stayed below the 3 percent that economists estimate is needed to lift inflation toward the Federal Reserve's 2-percent target.

The next chart highlights that the 10-year yield has spent the majority of the past 25-years inside of a falling channel. Silver edged up 1 cent to $16.36 an ounce. The euro rose to $1.2287 from $1.2256. The FTSE 100 in Britain lost 0.2 per cent.

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