Stocks Dropped, Hit by New Trade War Fear

U.S. stocks fell in the early trading on Wednesday, after the Trump administration announced new tariffs on Chinese goods, which investors fear could explode into a full-on trade war. The Dow Jones Industrial Average lately fell 111.91 points, or 0.45%, to 24,807.75. The S&P 500 was down 8.55 points, or 0.31%, to 2,785.29. The Nasdaq Composite shed 14.55 points, or 0.19%, to 7,744.64.

Oil prices sank Wednesday after Libya indicated it would resume export activities at its eastern ports, helping allay fears over tight global supplies. September Brent crude dropped $1.82, or 2.3%, to $77.10 a barrel. August West Texas Intermediate crude fell 62 cents, or 0.9%, to $73.49 a barrel.

China accused the United States of bullying and warned it would hit back after the Trump administration raised the stakes in their trade dispute, threatening 10 percent tariffs on $200 billion of Chinese goods.

U.S. loan applications to refinance existing homes fell to their lowest in over 17-1/2 years even as most 30-year home borrowing costs fell last week, data from the Mortgage Bankers Association showed on Wednesday.