BREAKING NEWS PG&E announces possible weekend Public Safety Power Shutoff for three counties Full Story
BREAKING NEWS Bear Fire: More evacuation orders reduced to warnings Full Story
SEVERE WX : Fire Weather Watch View Alerts

Dow falls 249 as Trump trade fears weigh on stocks

Trade jitters continue to weigh on Wall Street.The Dow slid 249 points on Wednesday as President Trump escalat...

Posted: Mar 15, 2018 8:47 PM

Trade jitters continue to weigh on Wall Street.

The Dow slid 249 points on Wednesday as President Trump escalated threats to clamp down on China. Earlier in the day, the Dow was down as much as 338. The S&P 500 dropped 0.5%, and the Nasdaq shed 0.1%.

Reuters reported on Tuesday that Trump was considering tariffs of up to $60 billion on Chinese imports in response to its alleged theft of US intellectual property. The US Trade Representative's office declined to comment on possible tariffs.

The report came after Trump blocked a $117 billion deal between chipmakers Broadcom and Qualcomm - an attempt to curb China's growing progress in the global technology race.

Related: Trump blocks Broadcom's $117 billion Qualcomm bid over national security

"The market is hyper-vigilant on potential action from the White House," Quincy Krosby, chief market strategist at Prudential Financial, said.

Boeing, the United States' largest exporter, lost 2.5%, shaving about 60 points off the Dow. Investors are worried that Boeing would be caught in the crosshairs of a trade fight between the two countries. China is Boeing's second-largest market behind the United States.

"Boeing is the poster child for international sales," said Brad McMillan, chief investment officer at Commonwealth Financial Network. "They're competing against Airbus and a handful of companies around the world. They are more directly impacted than anybody else would be."

The market has been under pressure since Trump announced plans to impose 25% tariffs on imported steel and 10% on aluminum. Trump signed off on the tariffs last week, granting exemptions to Mexico and Canada. Other countries could still be granted exemptions.

Related: Trump's tariff bombshell: Catch up here

Wall Street breathed a sigh of relief Wednesday when Trump tapped conservative media analyst Larry Kudlow to become his next chief economic adviser.

Kudlow is a free trade advocate and has opposed Trump's tariffs. Investors hope he can counter the protectionist wing of Trump's administration, including Commerce Secretary Wilbur Ross, US Trade Representative Robert Lighthizer and trade adviser Peter Navarro.

The Federal Reserve's plans for raising interest rates also loom in the background.

The Fed has signaled three rate hikes this year, but rising wage growth and creeping inflation could force it to act faster than investors have projected.

On Wednesday, retail sales data came in weaker than economists estimated, a signal the Fed may not need a fourth hike to keep inflation in check. New Fed chair Jerome Powell will preside over his first Fed meeting next week.

The yield on the 10-year Treasury note, which has climbed as expectations of additional rates have risen, fell Wednesday to 2.81%.

- CNNMoney's Matt Egan contributed to this report.

California Coronavirus Cases

Data is updated nightly.

Confirmed Cases: 799516

Reported Deaths: 15393
CountyConfirmedDeaths
Los Angeles2644146455
Riverside578831179
San Bernardino53359918
Orange526221182
San Diego45596773
Kern31712360
Fresno28019362
Sacramento21872399
Alameda20951397
Santa Clara20756304
San Joaquin20126437
Stanislaus16436345
Contra Costa16238204
Tulare15829259
Ventura12591146
Imperial11741317
San Francisco1094699
San Mateo9714144
Monterey970170
Santa Barbara8973113
Merced8828140
Kings756977
Sonoma7262120
Marin6641114
Solano627863
Madera445865
Placer353544
San Luis Obispo347929
Butte279043
Yolo278255
Santa Cruz22949
Sutter168911
Napa165313
San Benito132111
Yuba11367
El Dorado10884
Mendocino89418
Shasta75916
Lassen7360
Glenn5713
Tehama5334
Lake53011
Nevada5286
Colusa5246
Humboldt4967
Calaveras31414
Amador29616
Tuolumne2274
Inyo18715
Mono1652
Siskiyou1630
Del Norte1381
Mariposa752
Plumas500
Modoc250
Trinity150
Sierra60
Alpine20
Unassigned00
Chico
Clear
66° wxIcon
Hi: 87° Lo: 60°
Feels Like: 66°
Oroville
Clear
65° wxIcon
Hi: 87° Lo: 60°
Feels Like: 65°
Paradise
Clear
66° wxIcon
Hi: 79° Lo: 57°
Feels Like: 66°
Chester
Clear
42° wxIcon
Hi: 76° Lo: 46°
Feels Like: 42°
Red Bluff
Broken Clouds
67° wxIcon
Hi: 85° Lo: 59°
Feels Like: 67°
Willows
Clear
66° wxIcon
Hi: 90° Lo: 56°
Feels Like: 66°
A weak disturbance passed over northern California early this morning, but as expected, it only brought some gusty wind, a few clouds, slightly cooler weather, and no rain. Much bigger changes to our weather will occur this weekend.
KHSL Severe
KHSL Radar
KHSL Temperatures

Community Events