Stocks drop amid renewed concerns over China tariffs

Stocks fell Thursday following a report that President Donald Trump wants to move ahead with plans to impose tariffs on $200 billion in Chinese goods.

The Dow Jones Industrial Average dropped 137.65 points, or 0.53%, to 25,986.92. The S&P 500 was down 12.91 points, closing at 2,901.13. The Nasdaq Composite fell 21.32 points, or 0.26%, to 8,088.36.

According to a tweet by Bloomberg reporter Jennifer Jacobs, sources informed her that Trump told aides he wants to move ahead with a plan to impose tariffs on $200 billion in Chinese imports as soon as the public-comment period concludes next week.

FOX Business Network reported that a decision has not been finalized.

Meanwhile, Canadian and U.S. officials were meeting Thursday to renegotiate a NAFTA deal, after the U.S. and Mexico announced a preliminary trade deal between the two nations on Monday. Friday is seen as a deadline for the three countries to come to some agreement.

Earlier Thursday Trump touted the strength of the stock market, tweeting that more good news is coming.

Ticker Security Last Change Change %
I:DJI DOW JONES AVERAGES 34899.34 -905.04 -2.53%
SP500 S&P 500 4594.62 -106.84 -2.27%
I:COMP NASDAQ COMPOSITE INDEX 15491.656804 -353.57 -2.23%

Economic data released on Thursday included initial weekly jobless claims, personal income and consumer spending. Weekly jobless claims rose 3,000 to a seasonally-adjusted 213,000. U.S. personal incomes increased 0.3 percent in July and consumer spending advanced 0.4 percent.

The personal consumption expenditures (PCE) inflation index rose 0.1% in July and the core by 0.2%. The PCE index is the Fed’s preferred inflation gauge.

In company news, Campbell’s Soup announced Thursday plans to sell its international operations and refrigerated-foods business, abandoning efforts to become a more fresh food-oriented company.

Ticker Security Last Change Change %
CPB CAMPBELL SOUP CO. 41.52 +0.17 +0.41%

Commodities were mixed.

On Wednesday, shares rose on unexpectedly robust economic news: The government said that second-quarter GDP was revised to 4.2 percent versus the initial 4.1 percent. Analysts had expected no change.

The tech-heavy Nasdaq Composite and broader S&P 500 index closed at record highs -- for the fourth day in a row on Wednesday.

FOX Business’ Ken Martin contributed to this article.