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Dow Flinches Ahead of Titanic Tariff Hikes in 48 Hours

Last Updated September 23, 2020 12:59 PM
Sam Bourgi
Last Updated September 23, 2020 12:59 PM

The Dow and broader U.S. stock market traded mixed on Friday, giving back much of their earlier advance as investors looked ahead to planned tariff hikes by the United States and China this weekend.

Dow Pares Gains; Nasdaq Declines

Equities lost their luster Friday afternoon, diverging from a more upbeat Dow futures market. The Dow Jones Industrial Average rose by as much as 152 points before paring gains. The index finish up 41.03 points, or 0.2%, at 26,403.28.

Dow Jones Industrial Average gives back most of its gains Friday afternoon. | Source: Yahoo Finance

The broad S&P 500 Index of large-cap stocks edged up 0.1% to close at 2,926.46. The gains were mainly concentrated in materials, industrials and financials stocks.

The technology-heavy Nasdaq Composite declined 0.1% to 7,962.88.

U.S.-China Trade War Intensifies

donald trump, dow jones
U.S.-China trade war set to intensify this weekend as new tariffs come into effect. | Source: AP Photo / Alex Brandon

Beginning Sunday, the United States and China will raise tariffs on each other’s goods, prolonging a trade fight that is now in its second year.

Nearly 92% of apparel imports from China will be subject to tariffs on Sunday, according  to the American Apparel and Footwear Association. In response to the tariff fight, retailers including Macy’s, Best Buy, and Home Depot have announced they are moving factories out of China.

The United States will implement all remaining tariffs on December 15, giving consumers more time to load up their holiday baskets before Christmas.

Sunday will also mark the beginning of new tariffs on $75 billion worth of American imports into China. Beijing announced those measures last Friday, prompting the U.S. president to threaten additional duties against the country.

Click here for a real-time Dow Jones Industrial Average chart.