S&P hits session lows after Trump announces new tariffs on China. The dollar and oil also sank

[tacobell fan]

A fresh salvo in the U.S.-China trade war from President Donald Trump roiled financial markets a day after the Federal Reserve delivered the first interest-rate cut in a decade in part to combat the spat’s effects on global growth.

 

U.S. stocks erased gains of more than 1%, the dollar sank with oil and Treasuries rallied after Trump said the U.S. will levy a 10% tariff on $300 billion in Chinese goods starting Sept. 1. The yen surged versus the dollar. The 10-year Treasury yield dropped the lowest level since 2016, while two-year rates plunged 15 basis points. Crude slumped more than 6%.

Stocks had been rebounding from the Fed-induced sell-off Wednesday before Trump put trade back at the center of investor minds. Friday’s U.S. jobs data takes on more import, with analysts expecting hiring to fall to 165,000, and trade developments. American and Chinese negotiators plan to meet again in early September, after the latest round of talks ended with few signs of concrete progress.

 

 

Here are some of the key events to watch as the week unfolds:

 

 

• The U.S. July jobs report is due Friday.

Here are the main moves in markets:

Stocks

• The S&P 500 Index fell 0.1% as of 1:38 p.m. New York time.
• The Stoxx Europe 600 Index rose 0.5%.
• The MSCI Emerging Market Index sank 0.6%.
• The MSCI Asia Pacific Index dropped 0.2%.

Currencies

• The Bloomberg Dollar Spot Index fell 0.2%.
• The euro rose 0.1% to $1.1083.
• The Japanese yen rose 0.6% to 108.12 per dollar.

Bonds

• The yield on 10-year Treasuries fell 13 basis points to 1.88%.
• The two-year rate lost 15 basis points to 1.72%.
• Britain’s 10-year yield fell three basis points to 0.58%.

Commodities

• Gold rose 0.6% to $1,429.60 an ounce.
• West Texas Intermediate crude decreased 3.3% to $56.63 a barrel.