Stocks fell on Thursday after President Donald Trump said the U.S. will implement tariffs on steel and aluminum imports next week. The Dow Jones industrial average closed 431 points lower after rising more than 150 points earlier in the day. The 30-stock index fell as much as 586 points.
The S&P 500 declined 1.4 percent — erasing its year-to-date gains — with industrials as the worst-performing sector. It also briefly broke below its 100-day moving average, a key technical level. The Nasdaq composite fell 1.3 percent and dipped below its 50-day moving average.
USA Today reports:
“I don’t know if this will cause a trade war, and obviously that’s the fear,” said Lamar Villere, portfolio manager at investment manager Villere & Co. “But this is exactly what candidate Trump said he would do: He said he would be very protectionist and America-first.”
European Commission President Jean-Claude Juncker says the EU will take retaliatory action if Trump goes ahead with his plan to slap tariffs on steel and aluminum imports. As a candidate, Trump often campaigned on an “America First” trade policy, but hadn’t taken many steps to implement that since he took office.