Dow Tumbles 700 Points on Trump's Tariff Threat, Weak Jobs Report

S&P 500 Bears Make Way for Bulls

April 6 (Reuters) - The Dow Jones Industrial Average fell more than 450 points and the other main indexes slipped on Friday after U.S. President Donald Trump's latest tariff threat on Chinese imports revived fears of a trade war between the two countries. Among the biggest decliners of the day, Boeing Co. fell 1.7% while Caterpillar Inc. was off 0.8%. The index briefly fell more than 750 points.

This story is developing and will be updated...

Technology companies make a lot of their sales in Asia and they have struggled as Wall Street worries about a slowdown in global economic growth.

Equities fell hard earlier this week, then proceeded to recover, but Friday's losses have put the indexes on track for weekly losses.

The White House, in a statement (http://www.marketwatch.com/story/trump-statement-requesting-100-billion-in-additional-china-tariffs-2018-04-05) released after the market close Thursday, said that Trump asked the U.S. Trade Representative to consider an extra $100 billion in Chinese goods to face tariffs (http://www.marketwatch.com/story/futures-fall-as-trump-seeks-100-billion-in-additional-china-tariffs-2018-04-05) and to identify the products that could be targeted.

The earlier tariff threats roiled financial markets but stocks had rebounded Thursday on investor hopes that the parties would find a diplomatic solution.

For the week, the Dow was down 0.7 percent, the S&P 500 was down 1.4 percent and the Nasdaq was down 2.1 percent. Oil prices fell nearly 5 percent this week as investors wondered if an increase in trade tensions will reduce demand for oil by slowing down the global economy. Beijing fired back hours later by threatening tariffs on $50 billion worth of United States goods, including cars, planes and soybeans.

Investors will also tune into Fed Chairman Jerome Powell's speech at an event later in the day for signs the central bank could raise rates more than the expected two more times this year.

Responding on Friday, China's Ministry of Commerce said it would immediately retaliate if the United States imposed the sanctions. "We're not running a trade war", he told reporters.

Comments from Treasury Secretary Steve Mnuchin failed to calm investor fears.

The government reported that US employers added 103,000 jobs in March, a weaker pace than the last few months.

Wages grew 2.7 percent in March compared with a year earlier, in line with expectations.

Sam Stovall, chief investment strategist at CFRA Research, said investors were reacting to the administration's "good cop, bad cop kind of negotiating strategy". In February, an unexpected jump in wage growth set off inflation alarm bells and caused stocks to plunge.

Still, she said businesses support the idea of making changes in America's trade relationship with China. The yield on the 10-year Treasury fell to 2.78 percent from 2.83 percent.

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