The Dow declined 300 points, or 1.2%, on Friday morning after President Donald Trump announced plans to impose tariffs on Mexico. The S&P 500 fell 1.2% and the Nasdaq lost 1.3%
Trump’s tariff threat against one of America’s largest trading partners amplified investor worries about how trade tensions will disrupt business and slow global economic growth.
Auto makers, which rely on Mexico as a vital part of their supply chain, retreated. Fiat Chrysler (FCA) lost 5%, while General Motors (GM) and Ford (F) lost 3% apiece.
The news also rocked the Mexican peso, which tumbled 3.4% against the US dollar.
The rising trade tensions spilled over into the energy market, driving US oil prices 2.8% lower to $54.93 a barrel.
Uber (UBER) jumped 4% after its debut earnings report as a public company revealed a loss of $1 billion during the first quarter. Gap (GPS) plunged 15% after reporting poor earnings and sinking sales at its namesake and Old Navy brands.
All three major US indexes have declined more than 6% in May. It would be their first negative month of 2019. The Dow is also on track to decline for the sixth week in a row, the longest slump since June 2011.