Economic security

Dow Suddenly Plummets After Bloomberg Exposes China Bombshell

The Dow suddenly plunged during late-morning trading on Friday after Bloomberg published a report exposing that the Trump administration is debating a new policy that would ramp up pressure on the Chinese economy as the two countries prepare to return to the negotiating table.

The policy, if enacted, would limit American investors’ access to the Chinese market, threatening the “goodwill” Beijing and Washington had exchanged in recent weeks.

The Dow Jones Industrial Average and its fellow Wall Street stock indices quickly erased their daily gains in response to the report.

The Dow, which had plowed toward a triple-digit rally to close the week in positive territory, briefly plunged into decline and now remains little changed for the day. At last check, the DJIA had gained 20.74 points or 0.08% to trade at 26,911.86.

The S&P 500 and Nasdaq slid firmly into the red, falling 0.13% to 2,973.63 and 0.34% to 8,003.24.