NEW YORK – World stock indexes fell on Wednesday after the Trump administration published a $ 200 billion list of goods that could receive tariffs and China said that I would take reprisals. Energy and industrial companies and manufacturers of basic materials are suffering some of the worst losses.
MAINTENANCE SCORE: The S & P 500 Index lost 18 points, or 0.7 percent, to 2,775 from 12:15 p.m. Eastern Time. The Dow Jones Industrial Average fell 185 points, or 0.7 percent, to 24,734. The Nasdaq compound fell 48 points, or 0.6 percent, to 7,711. The Russell 2000, an index of smaller and more focused companies in the United States, yielded 8 points, or 0.5 percent, to 1,687.
The S & P 500 had risen for four days in a row and closed in a maximum of five months Tuesday.
TARIFF THREATS: The Trump administration proposed a 10 percent tax on imported items, including vacuum cleaners, furniture and auto parts and bicycles, but not US-branded smartphones and laptops. A decision on potential rates is scheduled after August 31.
The Chinese government said it will take "firm and decisive action" if the new tariffs are enacted. Chip makers, which make a large part of their sales in China, suffered some of the worst losses. Nvidia fell 2.3% to $ 247.50 and Micron Technology lost 3.2% to $ 53.94.
Among industrials, Caterpillar lost 2.7% to $ 137.45 and agricultural equipment manufacturer Deere lost 1.7% to $ 142.13.
WHAT'S NEXT? On Friday, USA UU And China applied taxes of 25 percent on $ 34 billion in imports and President Donald Trump said that almost all imports from China, more than $ 500 billion in goods, could be taxed. China imported only $ 130 billion in US goods. UU Last year but could retaliate by other means including regulatory moves and investigations of US companies.
The indexes in Europe and Asia suffered more pronounced losses as investors fear that the worsening trade dispute will hamper the growth of the global economy.
The trade dispute arises from Washington's complaint that Beijing steals or pressures companies to deliver technology and concerns that plans for the state development of Chinese champions in robots and other fields erode American industrial leadership.
ENERGY: oil prices fell after Libya said it would start exporting oil again. The reference price of US crude fell 2.4 percent to $ 72.36 a barrel in New York. Brent crude, used to fix international oil prices, lost 3.4 percent to $ 76.21 a barrel in London.
Chevron sank 2.7 percent to $ 124.10 and ConocoPhillips fell 1.8 percent to $ 70.47.
ABROAD: the CAC 40 in France and the DAX lost 1.5 percent. Britain's FTSE 100 index fell 1.3 percent.
Japan's Nikkei 225 index fell 1.2 percent and South Korean Kospi lost 0.6 percent, while Hang Seng of Hong Kong lost 1.3 percent.
LANDS: The airlines suffered heavy losses. The growth of tariffs in the US UU American Airlines dropped 6.4 percent to $ 36.63 and United Continental fell 3.4 percent to $ 68.87.
PRICE RISE: The Labor Department said that wholesale prices continued to rise in June. Excluding the prices of food and gas, which may be volatile, the department's producer price index has increased by 2.8 percent in the last year. That is the fastest pace in six years and a sign that inflation is recovering after years of weakness.
Investors fear that the Federal Reserve will raise interest rates more quickly as inflation increases. The Fed wants inflation to stay around 2 percent, but recently suggested it will not act too fast if inflation exceeds 2 percent.
SCOPE FOR HEAVEN: Twenty-First Century Fox raised its offer for Europe Sky Pay TV service. Fox already owns 39 percent of Sky and wants to buy the rest, but his rival Comcast intervened with his own offer. Fox says the new offer values Sky at $ 32.5 billion.
Fox lost 3.8 percent to $ 47.90. In the United Kingdom, Sky shares fell 0.5 percent.
BONDS: Bond prices went up. The yield on the 10-year Treasury note fell to 2.85 percent from 2.87 percent.
The fall in bond yields helped utilities earn small profits. Public utility companies tend to pay large dividends, so investors who want to earn income often buy them when bond yields fall. Real estate investment trusts, which also pay large dividends, fell less than the rest of the market.
COINS: The dollar rose to 111.57 yen from 111.28 yen. The edge of the euro fell to $ 1.1722 from $ 1.1745.
Marley Jay, AP Market Writer, can be contacted at http://twitter.com/MarleyJayAP His work can be found at https://apnews.com/search/ marley% 20jay
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