Stocks Opened Lower after China Announced Retaliatory Tariffs

U.S. stocks opened lower on Friday, after a report surfaced indicating that China was ready to take retaliatory measures in its lasting tariff conflict with the U.S. The Dow Jones Industrial Average lately fell 170.03 points, or 0.21%, to 26,082.21. The S&P 500 retreated 20.40 points, or 0.46%, to 2,902.55. The Nasdaq Composite skidded 72.49 points, or 0.38%, to 7,918.90.

Oil futures dived Friday morning after China announced it would impose retaliatory tariffs on $75 billion worth of imports from the U.S., including a levy on crude. West Texas Intermediate crude for October delivery fell $1.64, or 3%, to trade at $53.71 a barrel. October Brent crude shed $1.43, or 2.4%, to $58.48 a barrel.

China’s State Council Custom Tariff Commission announced new tariffs of between 5% and 10% on $75 billion in U.S. imports Friday morning, set to go into effect in two tranches, on Sept. 1 and Dec. 15, respectively. The tariffs will be imposed on agricultural products, crude oil, small aircraft and cars among other goods.

Powell is set to speak Friday at 10 a.m. Eastern Time, and the Fed Chairman’s comments will be parsed for clues on what the central bank might do at its upcoming policy meeting Sept. 17-18, amid recessionary signals emanating from the bond market.