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NEW YORK (AP) – Global stock indexes are falling Wednesday after the Trump administration released a list of $ 200 trillion in goods that could be hit by tariffs and China said it would be retaliate. In the U.S., industrial companies and basic materials makers are taking some of the worst losses.
KEEPING SCORE: The S & P 500 index lost 14 points, or 0.5 percent, to 2,779 as of 10 am Eastern time. The Dow Jones Industrial Average dropped 144 points, 0.6 percent gold, to 24.775. The Nasdaq composite fell 43 points, 0.6 percent gold, to 7.715. The Russell 2000, an index of smaller and more US-focused companies, gave up 8 points, or 0.5 percent, to 1.687.
The S & P 500 had risen for a month and a closed at a five-month high Tuesday.
TARIFF THREATS: The Trump administration list of vacuum cleaners, furniture and car parts but not US-branded smartphones and laptops. It is scheduled to make a decision on the potential tariffs after Aug. 31.
China's government said it would take "firm and forceful measures" if the new tariffs are enacted. Chipmakers, which make large portions of their sales in China, took some of the worst losses. Nvidia fell 1.8 percent to $ 248.82 and Micron Technology lost 3 percent to $ 54.05.
Boeing fell 1.1 percent to $ 343.45 and United Technologies sank 1.6 percent to $ 125.03. Airlines took sharp losses, with American down 4.1 percent to $ 37.50
WHAT NEXT? On Friday the U.S. and China put 25 percent taxes on $ 34 trillion in imports and President Donald Trump has said nearly all imports from China, some $ 500 billion in goods, could be taxed. China imported only $ 130 billion in goods from the United States
Indexes in Europe and Asia took over losses as investors worried the worsening trade dispute will hamper the growth of the world economy.
The trade dispute stems from Washington's claim that the stakes of the United States may be greater than that of the United States.
OVERSEAS: France's CAC 40 lost 1.3 percent and the DAX in Germany fell 1.5 percent. Britain's FTSE 100 index dropped 1.1 percent.
Japan's benchmark Nikkei 225 fell 1.2 percent and South Korea's lost Kospi 0.6 percent while Hong Kong's Hang Seng shed 1.3 percent.
PRICES RISING: The Labor Department . Excluding food and gas prices, which can be volatile, 2.8 percent over the last year. That's the fastest pace in six years, and it has been growing rapidly.
Investors have worried that the inflation rate will increase. The Fed wants inflation to stay at around 2 percent, but it suggests that it will not act too soon if inflation goes above the 2 percent mark.
ENERGY: Benchmark US crude fell 1 percent to $ 73.42 a barrel in New York . Brent crude, used to price international oils, lost 2 percent to $ 77.23 in London.
BONDS: Bond prices rose. The yield on the 10-year Treasury note fell to 2.85 percent from 2.87 percent.
CURRENCIES: The dollar fell to 111.22 yen from 111.28 yen. The euro edged up to $ 1.1750 from $ 1.1745.
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Marley Jay's AP Markets Writer can be reached at http://twitter.com/MarleyJayAP His work can be found at https://apnews.com/search/ marley% 20jay [19659019]
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