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* Indexes: Dow 1.43%, S&P 1.55%, Nasdaq 1.79%
* Powell says will "act as appropriate" to support growth
* China unveils retaliatory tariffs on U.S. goods
(Changes comment, adds details; Updates prices)
By Akanksha Rana and Medha Singh
Aug 23 (Reuters) - Wall Street's three main indexes lost
more than 1% on Friday after President Donald Trump ordered U.S.
companies "to immediately start looking for an alternative to
China" in response to Beijing's threat to impose retaliatory
tariffs on U.S. goods.
Trump gave no detail on how he might proceed with any such
order, although he said he would be offering a response later on
Friday. Earlier in the day, China vowed to impose additional tariffs
on goods worth $75 billion that include agricultural products,
crude oil, small aircraft and cars. Tariffs on some products
would take effect on Sept. 1 and others on Dec. 15. The indexes were on course to give up their weekly gains
made on hopes of stimulus measures from major central banks and
governments as well as a solid batch of retail earnings.
"It's a fair reaction from the markets. I don't think anyone
thought we'd get to this level," said Michael O'Rourke, chief
market strategist at JonesTrading in Greenwich, Connecticut.
U.S. stocks had earlier recovered from their lows after
Federal Reserve Chair Jerome Powell said the Fed would "act as
appropriate" to keep the current economic expansion on track,
supporting bets on a further decline in key borrowing costs.
"Interest rate cuts, while they help the economy, they're
not going to be enough to offset a major global trade war. It
seems that's the direction we're heading in," O'Rourke said.
While traders are still widely anticipating a 25 basis point
cut from the Federal Reserve in September, expectations of a
more aggressive 50 basis point cut rose to 10%, according to CME
Group's FedWatch tool.
At 11:35 a.m. ET, the Dow Jones Industrial Average .DJI
was down 374.75 points, or 1.43%, at 25,877.49 and the S&P 500
.SPX was down 45.22 points, or 1.55%, at 2,877.73. The Nasdaq
Composite .IXIC was down 142.93 points, or 1.79%, at 7,848.46.
Seven of the 11 major S&P sectors posted losses of more than
1%, with a 2% decline in the energy sector .SPNY leading the
decliners.
The tariff-sensitive Philadelphia chip index .SOX slid
1.50%.
Declining issues outnumbered advancers for a 3.00-to-1 ratio
on the NYSE and for a 2.98-to-1 ratio on the Nasdaq.
The S&P index recorded 33 new 52-week highs and 17 new lows,
while the Nasdaq recorded 34 new highs and 90 new lows.