Markets Right Now: Stocks sink after Trump raises tariffs

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NEW YORK (AP) — The latest on developments in financial markets (all times local):

4 p.m.

Stocks took a nosedive and bond prices spiked after President Donald Trump said the U.S. would raise tariffs on more Chinese goods, increasing the stakes in an ongoing trade battle.

The market had been on track for its biggest gain in nearly two months Thursday.

The Dow Jones Industrial Average was up nearly 300 points but plunged as much as 315.

Retailers and technology companies, which do a lot of business with China, took heavy losses.

Best Buy sank 10.8% and Micron lost 2.9%.

The S&P 500 fell 26 points, or 0.9%, to 2,953.

The Dow lost 280 points, or 1%, to 26,583. The Nasdaq gave up 64 points, or 0.8%, to 8,111.

Bond prices soared. The yield on the 10-year Treasury fell to 1.89%, the lowest since November 2016.

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1:37 p.m.

Stocks dropped sharply on Wall Street and investors snapped up bonds after President Donald Trump escalated his trade battle with China.

The Dow Jones Industrial Average went from a gain of more than 250 to a loss of 179.

Trump said in a tweet that the U.S. would place a 10% tariff on $300 billion in Chinese imports as of September 1 following the conclusion of the latest round of slow-moving trade talks.

Companies that rely heavily on sales to China took the brunt of the selling. Apple quickly went from a gain of 1.4% to a loss of 1.4%.

Bond prices spiked as traders sought safety. The yield on the 10-year Treasury dropped to 1.88%, the lowest it’s been since the 2016 election.

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11:45 a.m.

Stocks are moving steadily higher as General Motors and other big-name companies report solid earnings.

GM rose 3.1% Thursday after its profits came in far better than analysts were expecting. The automaker said higher prices for pickup trucks and SUVs helped overcome slowing sales.

The gains came a day after markets were spooked by comments from Federal Reserve Chairman Jerome Powell indicating the Fed was not embarking on a long cycle of lower interest rates.

The S&P 500 rose 30 points, or 1%, to 3,010.

The Dow Jones Industrial Average rose 275 points, or 1%, to 27,137. The Nasdaq climbed 123 points, or 1.5%, to 8,298.

Bond prices rose. The yield on the benchmark 10-year Treasury fell to 1.96%, the first time it’s been below 2% since July 3.

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9:35 a.m.

Stocks are edging higher in early trading as investors are reassured by solid earnings reports from several big-name companies.

General Motors added 2% early Thursday after reporting earnings that were far higher than analysts were expecting. The automaker said higher prices for pickup trucks and SUVs helped overcome slowing sales.

The early gains came a day after markets were spooked by comments from Federal Reserve Chairman Jerome Powell indicating the Fed was not embarking on a long cycle of lower interest rates.

The S&P 500 index rose 7 points, or 0.2%, to 2,987.

The Dow Jones Industrial Average rose 50 points, or 0.2%, to 26,915. The Nasdaq rose 53 points, or 0.6%, to 8,227.

Bond prices rose. The yield on the 10-year Treasury fell to just under 2%.

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