Stocks Plummet Amid Rising US-China Trade Tensions

Investors were already grappling with concerns that technology stocks won’t be able to generate the massive gains of previous years and the threat of inflation rising more quickly than expected. Those fears were alleviated Friday when new data showed a steady rise in wages last month.

But the issue of trade and how far the Trump administration is willing to go with its protectionist agenda has become a driving force behind the stock market’s gyrations for more than a month.

Those concerns deepened Friday after Chinese Commerce Ministry spokesman

Gao Feng

acknowledged the two governments were now in a battle and described President

Donald Trump’s

consideration of penalties on an additional $100 billion in Chinese goods as “extremely wrong.”

Investors worry the tit-for-tat responses between the U.S. and China could translate into more severe and farther-reaching sanctions that pressure American companies and raise prices for consumers.

Investors say an escalation could crimp the global economic growth engine that has acted as a key pillar for the latest leg of the stock-market rally.

Several Trump administration officials, including

Larry Kudlow,


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