Stocks Sink, Bonds Rally on Trump's Metals Duties: Markets Wrap

Institute for Supply Management says tariffs a ’big mistake’
Markets also digest Fed Chairman Powell’s Senate testimony

Sebastien Page, head of asset allocation at T. Rowe Price, says "we’re entering a period of turbulence."(Source: Bloomberg)

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By Sarah Ponczek and Kailey Leinz

February 28, 2018 at 10:21 PM UTC

Updated on

March 1, 2018 at 9:02 PM UTC

This article is for subscribers only.

U.S. stocks plunged and Treasuries climbed Thursday after U.S. President Donald Trump promised to impose substantial tariffs on foreign metals, drawing a rebuke from a manufacturing industry group and the European Commission.

The S&P 500 Index briefly fell below its 100-day moving average while the Dow Jones Industrial Average dropped more than 400 points as Trump added to earlier confusion on the fate of proposed tariffs by announcing the levies in a meeting with industry executives. The Institute for Supply Management called the proposal a “big mistake.” European Commission President Jean-Claude Juncker said Europe will respond “firmly” to any new tariffs. And Federal Reserve Chairman Jerome Powell earlier praised the benefits of trade.