Stocks drop on heightened trade concerns; indexes end four-day winning streak
U.S. stocks fell in a broad decline on Wednesday after the Trump administration announced new tariffs on Chinese goods, further escalating tensions between the U.S. and its major trading partners, which some investors fear could morph into a full-on trade war. The Dow Jones Industrial Average DJIA, -0.88% dropped 0.9%. The S&P 500 SPX, -0.71% closed down 0.7%. The Nasdaq Composite Index COMP, -0.55% lost 0.6%. All three posted their first negative session of the past five. The day's losses were widespread, with 10 of the 11 primary S&P 500 sectors ending lower on the day. The industrial and material industries, both of which have a high correlation to trade issues, were among the biggest decliners, falling more than 1.5%. Also weighing on markets was a 2.2% drop in the energy sector, which fell as crude oil CLK9, -4.01% suffered its biggest one-day drop in more than a year. Among specific stocks, Boeing Co. BA, -1.88% fell 1.9% and Caterpillar Inc. CAT, -3.15% lost 3.2%. Chevron Corp. CVX, -3.18% ended down 3.2%.