U.S. stocks ended the week with deep selloff, leaving them lower for the five days as the White House\u2019s latest trade bluster rattled global financial markets.<\/p>\n
The S&P 500 Index plunged more than two per cent and all 30 members of the Dow Jones Industrial Average retreated as President Donald Trump ordered a review of additional tariffs, which prompted an aggressive response from China.<\/p>\n
Fresh attempts by White House officials to tone down the bluster failed to calm nerves, with the CBOE Volatility Index back above 21. Treasury Secretary Steven Mnuchin added to the anxiety by saying there\u2019s a \u201clevel of risk\u201d the spat could worsen.<\/p>\n
Trump said the market turmoil was short-term \u201cpain,\u201d but insisted the outcome would leave the U.S. in a better position. The president\u2019s top economic adviser said the U.S. and China are holding \u201cback-channel discussions\u201d to resolve an escalating trade dispute that has unsettled global financial markets. China earlier said no talks were ongoing.<\/p>\n
The trade tensions overshadowed the latest U.S. jobs report, which showed hiring cooled by more than forecast in March. The renewed sabre rattling provided a bookend to a week that started with equities tumbling amid amplified rhetoric. That gave way to a three-day rally after White House officials signalled the president\u2019s tough talk was part of a negotiating plan.<\/p>\n
\u201cIt\u2019s bad when this happens on a Friday, because then people get freaked out over the weekend,\u201d Donald Selkin, New York-based chief market strategist at Newbridge Securities Corp, said by phone. \u201cThe worst thing you want to see is a bad market late on a Friday.\u201d<\/p>\n
These are the main moves in markets:
\nStocks<\/strong>
\nThe S&P 500 fell 2.2 per cent to 2,604.07 as of 4 p.m. in New York, capping a 1.4 per cent drop in the week. The Nasdaq Composite Index slid 2.3 per cent to 6,915.11. The DJIA was also off 2.3 per cent, to 23,932.75. The S&P\/TSX fell 0.97 per cent to 15,207.41.
\nCurrencies<\/strong>
\nThe Bloomberg Dollar Spot Index fell 0.2 per cent. The Euro rose 0.4 per cent to US$1.2286. The British pound gained 0.7 per cent to US$1.4094. The Japanese yen rose 0.5 per cent to 106.895. The Canadian dollar closed at US$0.78.
\nBonds<\/strong>
\nThe yield on 10-year U.S. Treasuries declined six basis points to 2.77 per cent, the largest fall in more than a week. The two-year rate fell four basis points to 2.266. Germany\u2019s 10-year yield dipped three basis points to 0.497 per cent.
\nCommodities<\/strong>
\nThe Bloomberg Commodity Index decreased 0.3 per cent. West Texas Intermediate crude dipped 2.5 per cent to $61.94 a barrel. Gold futures rose 0.6 per cent to US$1,336.70 an ounce.<\/p>\n