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00:00:00
>> Wall Street is having a panic attack. The stock market nose-dived, Thursday on news the US would hit China with $60 billion in new tariffs. I'm Conway Gittens in New York. The Dow Jones industrial average slumped more than 700 points on fear the US has moved one step closer to a possible trade war with its biggest partner, China.
00:00:22
But that wasn't the only ingredient in this untasty stew. The tech wreck is in full effect despite Facebook's apology tour over data misused in the 2016 presidential election. Facebook shares were down nearly 3% and that weighed on tech stocks across the board, especially the ones that traffic in data collection.
00:00:46
And the federal reserve's downgrade of its economic outlook isn't going down well with investors either. Traders, however are pinning most of the pain for this huge drop on trade. For proof, look no further than some of the biggest global players in the Dow. Caterpillar, Boeing, 3M and JPMorgan Chase.
00:01:05
All big losers, Thursday. Investors running for cover as President Tramp announced wide range in step quote, targeting China's economic aggression. So what's the plan? Slap penalties on goods coming from China. Take aim at China's tech industry and restrict Chinese investment in the US, but there's growing concern Tramp's protection and solution to try and save the market and jobs could end up having an adverse effect by driving up prices for imported goods which would run the risk of slowing down an economy that's running high on adrenaline from its tax cuts.
00:01:40
China fighting back even before the tariffs were announced calling the US a repeat abuser of trade rules. With neither side backing down and fears of retaliation growing, Wall Street is bracing for a fight between the world's two biggest economies. A fight that could leave investors with a black eye.