Stocks down amid new tariff talk

The dollar weakened the most since March, Treasuries tumbled and stocks closed mostly lower after President Donald Trump’s latest verbal salvos fanned investor concern that a global trade war is escalating.

Financial markets were upended after Trump said he’s “ready to go” with additional import tariffs and that China, the European Union and others have been manipulating their currencies and interest rates. Yields on Treasuries climbed the most since May as Trump reiterated that he’s unhappy with the Federal Reserve tightening after the administration has worked so hard to grow the economy.

“We’re in a world of firsts and tweeting about the Fed, not once, but twice, doubling down, that the president is trying to exert pressure,” said Kim Forrest, senior portfolio manager at Fort Pitt Capital Group LLC in Pittsburgh. “Crazy times we live in, I love it. You never know what’s going to happen. This is supposed to be the sleepy time. We’re supposed to be looking at earnings, which are killing it by the way.”

Trump’s latest move in the trade war with China came as investors try to gauge the ability of the Asian nation’s economy — the world’s second-biggest — to withstand a protectionist showdown. The yuan may be a key tool in China’s response to Trump, who continues to express dissatisfaction with America’s own monetary policy as his country’s currency strengthens.

Oil posted its third consecutive weekly loss amid concern the escalating trade rows will undercut energy demand, undermining reassurances from Saudi Arabia that it won’t flood global crude markets.

Copper rose for the first day this week after the yuan steadied amid signs that domestic banks are taking steps to support the currency. Most metals were supported on the London Metal Exchange as the dollar weakened for the first time in four days. The gains in metals capped a turbulent week across the industry as traders extended a month long selloff kicked off by fears that the trade tensions between China and the U.S. will hurt demand for industrial materials.