Live: Trump threatens tariffs on Mexico over immigration

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Traders work on the floor of the New York Stock Exchange (NYSE) on May 31, 2019 in New York City.
Traders work on the floor of the New York Stock Exchange (NYSE) on May 31, 2019 in New York City. Spencer Platt/Getty Images

The Dow fell 355 points, or 1.4%, on Friday as investors agonized over President Trump’s threat to impose escalating tariffs on Mexico.

The S&P 500 lost 1.3%, while the Nasdaq fell 1.5%. The selloff capped the Dow’s sixth-straight losing week, the longest slump since June 2011. The Dow finished below 25,000 for the first time in four months.

The Dow and S&P 500 declined nearly 7% apiece in May, their first losing months since December. The Nasdaq tumbled 8% on the month, its worst May since 2010.

Why this matters: Trump’s vow to impose tariffs on Mexico surprised investors, driving shares of auto companies, beer makers and apparel companies sharply lower. General Motors declined 4%, Corona maker Constellation Brands dropped 6% and Levi Straus lost 7%.

US oil prices plunged 5.5% to a three-month low of $53.50 a barrel, reflecting fear about the economic impact of the tariffs on China and Mexico. Crude tumbled 16% in May, snapping a four-month winning streak.

Investors fled to the safety of US government debt, driving the 10-year Treasury yield to 2.13%, the lowest level in nearly two years.

The Mexican peso declined 2.4% against the US dollar, while ETF that track Mexican stocks plunged 4%.



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