US stocks tumbled on Thursday as investors fear the possible effects of President Donald Trump’s tariff proposal on up to $60 billion-worth of Chinese imports to the global economy, inciting the highest percentage drop in Wall Street’s three major indexes since their entrance to the correction territory six weeks ago.
Trump released a presidential memorandum directed to Chinese imports just after a period of consultation, providing China a chance to respond to avoid the risks of Beijing’s immediate reprisal.
Drops were recorded over major industries. Boeing Co. plunged 5.2 percent, Caterpillar Inc. dropped 5.7 and 3M Co. lost 4.7.
As trade closing approached, Wall street faced continuous selling pressure despite of recovering from the equities’ earlier lows. This pressure is due to the potential scale of US tariffs and its possible impact on international trade.
Among the largest indices, Dow Jones Industrial Average hit a 2.93 percent drop or 724.43 points, S&P 500 plunged 68.4 points or 2.43 percent and Nasdaq Composite lost 178.61 points or 2.43 percent.
“There’s too much negative sentiment right now,” sadi Amundi Pioneer Asset Management’s portfolio manager John Carrey from Boston. He also added that it will be a rough sledding for the meantime because he sees nothing on the horizon to reassure people that things are in a great condition.
These losses recorded the largest daily percentage decrease for the aforementioned major indexes since Dow and S&P declared a market correction from their January 26 highs.