Beijing imposes tariffs on U.S. imports worth around $3 billion, including a 15% duty on 120 American products including fruits, nuts, wine and steel pipes and a 25% tax on eight others, like recycled aluminum and pork. The Russell 2000 index of smaller-company stocks gained 19.51 points, or 1.3 percent, to 1,531.66.
Big industrial and technology stocks were hardest hit by the selling.
When reports surfaced last month that PresidentDonald Trump planned to impose sweeping tariffs on imports from China, 82 footwear retailers, including Nike, Wolverine Worldwide and Clarks, sent a letter to the White House expressing "strong concern".
U.S. orange juice, certain sorghum products, cotton, some types of wheat, as well as trucks, some sport-utility vehicles, and certain electric vehicles, will also be subject to the new tariffs, according to the Chinese Finance Ministry. The Dow fell 506.21 points, or 2.11 per cent, to 23,527.15.
Beijing has been adamant that it did not want a trade war, but that it would not not back down under U.S. pressure.
Borrowing costs nudged lower in Europe too, even as the first March reading on eurozone inflation, a key release for markets as the European Central Bank (ECB) looks to wind down its massive monetary stimulus, came in firm at 1.4%. The S&P 500 gained 17.72 points, or 0.68 percent, to 2,632.17 and the Nasdaq Composite added 54.37 points, or 0.78 percent, to 6,995.65.
Still, stocks on Wall Street and in Europe pulled back from more than 1 percent declines, with the FTSE in London closing higher and the three major us indexes later turned positive.
Wall Street slid amid concern about the latest moves towards a potential trade war between the U.S. and China.
Stock markets are likely to react negatively to a trade war which could easily escalate and drag in other nations.
After a big early loss, US crude dipped 14 cents to $63.37 a barrel in NY while Brent crude, used to price worldwide oils, fell 10 cents to $68.02 a barrel in London.
"Trade war headlines create a lot of noise, spooking fast money", Guillermo Hernandez Sampere, head of trading at MPPM EK in Eppstein, Germany, told Bloomberg. Heating oil lost 2 cents to $1.98 a gallon. Natural gas rose 2 cents to $2.72 per 1,000 cubic feet. President Donald Trump has said that China must shave $100 billion off that deficit.
GM rival Ford Motor Co F.N lost as much as 3 percent while electric carmaker Tesla TSLA.O Inc, which depends on China for 17 percent of its revenue, fell as much as 5.8 percent.
The swing in risk sentiment put the pep back into bonds, with yields on U.S. 10-year treasury debt down two basis points at 2.76%.
Gold, for example, was up 0.8 percent at $1,347.40 an ounce.
EPA announces rollback of Obama-era mileage standards
Mary Barra, the head of General Motors, said last month her company is committed to zero emissions and an all-electric line. The US Environmental Protection Agency (EPA ) has announced it will ease emissions standards for cars and trucks.
The rising trade rhetoric saw the dollar buckle to 106.16 yen, after edging up from a low of 105.70 on Tuesday. The euro hovered at $1.2296, after easing from a top of $1.2335 overnight, while the dollar index was 0.2% lower at 90.
However Stanford Health Care Hospital said it has received four to five patients following the shooting, according to Sky News. WJBF's sister station KRON4 is hearing reports of an active shooter at YouTube's headquarters in San Bruno.
Liverpool's Mohamed Salah is delighted after scoring the victor against Crystal Palace in an EPL encounter on Saturday. Luka Milivojevic slotted home the resultant penalty. "I almost had a heart attack [when he took it]", Klopp added.
Robert Griffin III is back in the National Football League , signing a one-year deal with the Baltimore Ravens on Wednesday. However, injuries, poor play and a constantly changing coaching staff contributed to Griffin's exit from Washington.
That's especially true of young Millicent Simmonds who Krasinski says was instrumental to the vision of the film. So whose suit would you like to see Krasinski fill? Truth is, that's what I was most scared of, the silence.
He said, "There are companies that work hard to charge you more, and there are companies that work hard to charge you less". Facebook doesn't have a great track record when it comes to handling user privacy or being transparent about it.
Snead has now given up his first- and second-round picks in this draft to get Cooks and one year of Sammy Watkins . It's impossible to escape the speculation that the Cooks trade is potentially a precursor to a trade for Beckham.
He added: "We do not have a contract, any understanding, formal or informal, with Israel for them to dump their refugees here". However, other officials objected to the fact that 16,250 migrants would be resettled in Israel.
M - North Korean leader Kim Jong-un and his wife have watched South Korean K-pop stars perform in a rare event in Pyongyang. The Day of the Sun falls on April 15, when North Korean founder Kim Il Sung, Kim Jong-un's grandfather, was born in 1912.
Philip retired from public life past year but has since appeared several times at royal engagements alongside Elizabeth. He was also hospitalized for an "infection stemming from a pre-existing condition" in June of past year .
Asked to clarify, he said: "A real war, worse than a cold war is a real war , it will be the last war in the history of mankind". He argued that experts have said that such nerve agents could have been made in some 20 countries.
Apple hires former Google AI chief John Giannandrea
The conventional wisdom is that Apple is a laggard in the race to infuse consumer technology with artificial intelligence . Whether or not making computers smarter and more personal means improving search features with AI remains to be seen.
Yorkshire Water's gender pay gap lower than national average
Particularly telling is the section where companies reveal what percentage of the best and worst-paid members of staff are women. Universal reported a median pay gap of 16.7% and a mean pay gap of 29.8% while an equal 74% of men and women received bonuses .
Left oblique strain leads to DL stint for Mike Zunino
Zunino reportedly sustained the injury during batting practice on Wednesday and had yet to make his season debut for Seattle. Bauer enjoyed his best year in the majors in 2017 where he was 17-9 with a 4.19 ERA over 31 starts.
Intel Announced its 8th Gen Core Processors
It's called the Core i9-8950K and includes six cores (12 threads) and is manufactured using Intel's 14nm++ process technology . Clearly, the idea with this processor was to bring desktop , hexa-core power to gaming laptops and prosumer devices.
Kids egg-cited for Easter hunt
To ensure everyone got a treat, kids were asked to take no more than five eggs. "We had a very good time and she loved it". Inside each egg was a variety of prizes from candy to cash, Amador said. "So, she had some practice".
Egypt's president wins re-election with 97% of vote
One day later, another serious contender, rights lawyer Khaled Ali withdrew, saying he and his supporters were being intimidated. According to Egyptian state media , US President Donald Trump called el-Sissi to congratulate him on his victory.