Avie Schneider
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The Dow fell more than 700 points before recovering to close down 1.9 percent. Amazon tumbled more than 5 percent after President Trump criticized the company in tweets.
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U.S. stock indexes surged about 3 percent Monday after fears eased of a trade war with China. The two major trading partners reportedly are negotiating to improve U.S. access to Chinese markets.
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The Dow lost a total of more than 1,100 points in the past two days amid rising trade tensions between the U.S. and China. Japan's Nikkei dived 4.5 percent, and indexes also fell in Europe.
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The Dow Jones industrial average tumbled nearly 3 percent Thursday after the Trump administration announced plans to impose tariffs on Chinese imports.
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The central bank raised its key interest rate for the first time under Jerome Powell, announcing a quarter-percentage-point hike. Economists wonder if faster growth will mean more aggressive hikes.
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The European Union has published an exhaustive 10-page list of hundreds of U.S. products that could be subject to European tariffs.
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The president promised steel and aluminum executives that he will levy tariffs on imports of their products in coming weeks. The tariffs will be 25 percent for steel and 10 percent for aluminum.
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The Dow rebounded Friday, closing up more than 300 points. But the index lost about 5 percent for the week as the markets focused on inflation and ballooning government debt.
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The stock market continued to lose ground Monday after Friday's steep drop, with the Dow Jones industrial average down nearly 1,200 points — its worst single-day drop.
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Major stock indexes dropped sharply Friday; the Dow Jones industrial average tumbled 2.6 percent amid signs that wage growth is picking up. It was the Dow's worst weekly performance in two years.