Global stock markets tumbled and oil prices dropped for a second day on Friday, with the Nasdaq Composite heading toward a bear market, as China struck back against US President Donald Trump's tariffs and worries mounted over a global trade war.
Data showing the US economy added far more jobs than expected in March did little to brighten the mood.
Responding to Trump's tariffs, China on Friday said it would impose additional levies of 34% on American goods, confirming investor fears that a full-blown global trade war is under way.
Worries over a global recession drove US oil prices down 8%, while investors rushed towards the safety of government bonds and traders ramped up bets on rate cuts from the Federal Reserve and other major central banks.
Companies with exposure to China also fell. Apple, Nvidia and Amazon.com all were down sharply.
Bank shares dropped across the globe as fears of a recession increased. The S&P 500 financial index was down 5.1% on Friday.
The Dow Jones Industrial Average fell 1,230.72 points to 39,315.21, the S&P 500 fell 190.89 points to 5,205.34 and the Nasdaq Composite fell 604.27 points to 15,954.66.
US crude was down 8.5% at $61.24 a barrel and Brent fell to $64.77 per barrel, down 7.66% on the day.
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