The escalated trade rhetoric contributed to anxiety among investors regarding the market’s outlook.
“There’s the possibility of (China) devaluing its currency again, which pushes up the dollar and turns the pressure up on US exporters,” Krosby said.
The Dow Jones Industrial Average fell 79.33 points, or 0.3 per cent, to 25,916.54, the SP 500 lost 6.37 points, or 0.2 per cent, to 2871.68 and the Nasdaq Composite dropped 20.19 points, or 0.3 per cent, to 7902.54.
For the week, the Dow lost 0.19 per cent, the SP fell 1.03 per cent, and the Nasdaq shed 2.55 per cent. The Nasdaq registered its greatest weekly percentage decline since late March, while the SP’s weekly percentage drop was its biggest since late June.
The SP and Dow had opened lower after the US Labor Department’s employment report showed accelerating job growth and a surge in wage growth. Though the report indicated a strong economy, it raised concerns among investors regarding inflation and the Federal Reserve’s plans for increasing interest rates.