Negative sentiment in the stock market was fueled after President Trump threatened another $100 billion of tariffs on China imports.
The market also seemed to take comfort from the fact that the effective date of China's move depends on when the USA action takes effect and Washington has a two-month window for public comment and consultation.
With the Dow and 10-year yields testing support near the tops of 70-year and 25-year channels in the first chart and the Dow and S&P testing support at each (2) in the second chart, if these support lines would break to the downside, don't be surprised if selling pressure picks up. But late Thursday, Trump ordered the U.S. Trade Representative to consider placing more tariffs on Chinese imports.
In the bond market, treasuries have pulled back near the unchanged line after seeing early strength.
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Technology companies and banks also fell. Caterpillar (CAT.N) declined 2.8 percent and Deere (DE.N) dropped about 2.3 percent.
Automakers Ford, General Motors, Fiat Chrysler and Tesla fell between 2 percent and 4 percent.
The U.S. and China have recently engaged in tit-for-tat tariff announcements, although traders seem optimistic that the threats are only a precursor to negotiations of a trade agreement between the two countries. Friday's downdraft also came amid a jobs report for March that produced a weaker-than-expected headline figure, showing the US economy added just 103,000 jobs versus forecasts for a rise of 170,000. Hilton Capital Management LLC owned about 0.58% of Direxion Daily S&P 500 Bull 1.25X Shares worth $483,000 at the end of the most recent quarter.
Before the session started, a Labor Department report showed nonfarm payrolls increased by a smaller-than-expected 103,000 last month.
Grain merchant Archer Daniels was down 2.8 percent, while Bunge slipped 2.5 percent. Shares of Boeing, the single largest USA exporter to China, tumbled 4.6 percent. All components of the Philadelphia chipmakers index trading premarket were lower, led by AMD's 4 percent drop.