U.S. Stocks, Bond Yields Fall on Trade Tensions

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U.S. Stocks, Bond Yields Fall on Trade Tensions
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Stocks and bond yields slid after fresh threats from China and Trump escalated trade tensions

U.S. stocks slumped Friday after China said it would impose retaliatory tariffs on additional U.S. products and President Trump vowed to respond.

The Dow Jones Industrial Average dropped more than 500 points, or 2%, putting a halt to a relatively quiet week for markets. Yields on U.S. government bonds also tumbled, as did commodities markets, such as oil and copper, that are sensitive to the two countries’ trade battle.

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