The Dow posted a triple-digit drop after the Trump administration said it will remove steel and aluminum tariff exemptions from the European Union and other U.S. allies, adding to trade concerns among investors.
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The Dow Jones Industrial Average slipped 251.94 points, or 1.02%, to 24,415.84. The S&P 500 fell 18.74 points, or 0.7%, to 2,705.27. The Nasdaq Composite dropped 20.34 points, or 0.27%, to 7,442.12. With the removal of exemptions, tariffs of 25% on steel and 10% on aluminum will go into effect at midnight for the EU, Canada and Mexico.
|I:DJI||DOW JONES AVERAGES||26642.59||+556.79||+2.13%|
|I:COMP||NASDAQ COMPOSITE INDEX||10488.577408||+97.73||+0.94%|
While most stocks fell on the U.S. move, some domestic steel producers – including United States Steel and Nucor – rallied.
|X||UNITED STATES STEEL CORPORATION||7.82||+0.52||+7.12%|
|STLD||STEEL DYNAMICS INC.||26.47||+0.91||+3.56%|
Despite Thursday's selloff, the major indexes remained in positive territory in May and clinched a two-month winning streak. The Dow rose 1.05% during the month, while the broader S&P 500 was up 2.16%. The Nasdaq gained 5.32%.
Investors digested a busy economic data calendar. Weekly jobless claims fell more than expected, and consumer spending jumped 0.6% in April for the biggest gain in five months. The core personal consumption expenditures index rose 1.8% in April from a year earlier, matching March’s rate, which was revised lower from the 1.9% pace that was previously reported. The Fed’s official inflation target is 2%.
U.S. pending home sales fell 1.3% in April, according to the National Association of Realtors. The reading was at a three-month low.
In commodities, U.S. oil futures retreated 1.7% to $67.04 a barrel.
Harley-Davidson shares were down more than 2% in reaction to Trump's tariffs, which could drive up costs for raw materials, the company warned. The EU also had listed Harley-Davidson motorcycles as a potential retaliatory target if the U.S.'s tariffs on steel and aluminum took effect.
General Motors surged nearly 13% on news that Japan's SoftBank will invest in the automaker's self-driving car unit, Cruise.
Sears dropped 12.5% after reporting weaker quarterly sales.
IBM shares fell less than 1%. The company is cutting some jobs in its Watson Health division.