DOW Plunges More Than 700 Points on Trade Fears

Johnson & Johnson fell $2.09, or 1.6 percent, to $129.10 and Amgen declined $3.49, or 1.9 percent, to $178.10.

The Nasdaq fell 2.4 percent Friday, losing 6.5 percent on the week, weighed down by fading technology stocks.

The Nasdaq fell roughy 2.4 percent, while the S&P slid 2.5 percent. But on Friday, declines in global stocks pulled DWS shares below the initial public offering price. Brent crude, used to price worldwide oils, fell 56 cents, or 0.8 percent, to $68.91 a barrel in London.

The Dow Jones Industrial stock index, one of the most significant indicators of United States financial health, suffered a 425 point loss on Friday after shedding 700 points the day before.

Industrial, financial, and technology stocks led major indexes lower.

The news raised concern that USA lawmakers could draw up regulation on data usage for Facebook and other major tech companies.

Trump on Thursday announced about $50 billion in annual tariffs on a variety of goods from China.

The move sparked investor fears of a global trade war involving the two largest economies on earth. The value of the tariffs is said to be worth $3 billion and will impact products such as pork, wine and steel.

Positive sentiment may also be generated in reaction to a report from the Commerce Department showing new orders for US manufactured durable goods surged up by much more than anticipated in the month of February. A trade war could disrupt the back-and-forth flow of parts, forcing factories to slow or halt production.

Amid the uncertain global economic climate, investors seeking safer assets jumped into government bonds in Europe and the United States.

The yield on 10-year Treasuries fell one basis point to 2.82 percent.

Bonds rallied, driving yields lower, as investors fled equities.

Many investors also turned to the Japanese yen, a currency likely to benefit from a full-fledged trade war.

The Japanese yen advanced 0.5 percent to 104.78 per dollar, the strongest in more than 16 months. The contract shed 87 cents, or 1.3 percent, to close at $64.30 a barrel in NY.

The major European markets have also moved to the downside on the day.

"This is probably meant to get China to get more serious in discussions around violations of intellectual property rights and addressing those issues", he said.

ENERGY: Benchmark U.S. crude shed 76 cents, or 1.2 percent, to $64.41 a barrel in NY. Yields fall as prices rise. Natural gas lost 3 cents to $2.62 per 1,000 cubic feet.

"Markets are on a knife-edge, fearing a trade war", says Peter Rosenstreich of Swissquote Bank, Switzerland's leading online bank.

The Fed also increased its projections for economic growth on Wednesday, bumping them up from previous estimates done before Republicans passed their tax bill. The Nasdaq composite fell 61 points, or 0.8 percent, to 7,107.

South Africa's rand climbed 0.8 per cent ahead of a decision by Moody's on the fate of the country's last remaining investment grade credit rating.

  • Zachary Reyes