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 traded 550 points lower after rising more than 150 points earlier in the day. The S&P 500 declined 1.8 percent, with tech as the worst-performing sector. The Nasdaq composite fell 1.9 percent and broke below its 50-day moving average, a key technical level.
The U.S. will set tariffs of 25 percent for steel and 10 percent for aluminum, the president said. It is unclear whether they will apply to all imports or only metals from certain countries.
“That could really spook the market. The biggest wildcard would be a trade war and nobody should be excited for that.” said Marc Chaikin, CEO of Chaikin Analytics.
Shares of Ford Motor and General Motors traded near session lows, down more than 3 percent. Steel stocks like U.S. Steel and AK Steel traded sharply higher.
Source: Bloomberg Pro Terminal
Trader Bozhidar Arabadzhiev