The stock market was headed for another pounding Friday after China retaliated with new tariffs on U.S. goods, raising fears a trade war will tip the globe into a recession. Futures tied to the blue-chip Dow Jones Industrial Average lost 950 points, or 2.3%. Futures levels indicated the Dow would open official trading about 1,500 points lower. This follows a 1,679.39 point decline on Thursday. S&P 500 futures lost 2.2% after the benchmark shed 4.84% on Thursday. Nasdaq 100 futures dropped 2.3% as many tech companies have exposure to China. China’s commerce ministry said Friday the country will impose a 34% levy on all U.S. products. This matches the tariff on Chinese goods coming into the U.S. unveiled by President Donald Trump on Wednesday. “The Trump administration may be playing a game of chicken with trading partners, but market participants aren’t willing to wait around for the results,” said Michael Arone, SPDR chief investment strategist at State Street Global Advisors. “Investors are selling first and asking questions later.” Companies with large exposure to China led declines in premarket trading with Apple and Qualcomm down 5% and 6%, respectively. Tesla lost 5% and Caterpillar shed 6%. Nvidia fell about 4%. Bank stocks tumbled in the premarket as worries of a U.S. economic slowdown grew. Morgan Stanley dropped 5%, while Goldman Sachs shed 4.5%. Citigroup and JPMorgan Chase each slid more than 4%, while Wells Fargo dipped 5%. The 10-year Treasury yield fell back below 4% Friday as investors flooded into bonds for safety, pushing prices up and rates lower. JPMorgan late Thursday raised the odds of a recession this year to 60% from 40%. The escalation comes after the U.S. duties announced by Trump sent stocks to their worst day since 2020. The S&P 500 fell back into a correction Thursday with it down about 12% from its February all-time high. The small-cap focused Russell 2000 dove more than 6%, the first widely followed measure of U.S. stocks to enter a bear market, or a decline of at least 20% from its last peak. Trump appeared to be steadfast in the face of the markets backlash, posting on Truth Social Friday that his “policies will never change,” while urging investors to invest more in the U.S. The Nasdaq Composite has led the way lower for stocks this week, falling 4.5% as the tariff plan drove investors to reduce their risk exposure. The S&P 500 and Dow Industrials have slipped 3.3% and 2.5%, respectively, week to date. Both the Nasdaq and S&P 500 are tracking for their worst weekly performances since September 2024 and sixth negative week of the last seven. The closely watched jobs report for March gave investors a mixed picture of the U.S. economy. Nonfarm payrolls increased by 228,000 last month, while economists polled by Dow Jones forecast an increase of 140,000. The unemployment rate inched up to 4.2%, compared to estimates that called for the figure to hold steady at 4.1%. U.S. Treasury yields continued to plummet on Friday, with 10-year Treasury yield falling well below 4%, after China retaliated against President Donald Trump’s aggressive “reciprocal tariff” policy rollout, causing investors to flood into bonds for safety on fears of a global recession. The 10-year Treasury yield dropped over 14 basis points to 3.912%, hitting its lowest level since October. The yield had topped 4.8% earlier this year on hopes that Trump would rev up the U.S. economy with tax cuts. Japan stocks led declines in the region on Friday, tracking steep losses on Wall Street after U.S. President Donald Trump’s tariffs rattled global markets. Australia’s S&P/ASX 200 fell 2.44% to close at 7,667.8, sliding into correction territory after declining 11% since its last high in February. Japan’s Nikkei 225 fell 2.75% to close at 33,780.58, down 20% from its recent peak in July while the Topix declined 3.37% to close at 2,482.06. South Korea’s Kospi slipped 0.86% to close at 2,465.42 and the small-cap Kosdaq added 0.57% to close at 687.39, after the country’s Constitutional Court upheld the impeachment of President Yoon Suk Yeol, ousting him from office. Hong Kong and China markets are closed for the Qingming Festival. Oil prices plunged by 8% on Friday, heading for their lowest close since the midst of the coronavirus pandemic in 2021, as China hit back in an escalating global trade war with the U.S. after President Donald Trump’s barrage of levies this week. China announced it will impose additional tariffs of 34% on all U.S. goods from April 10. Nations around the world have readied retaliation after Trump raised tariff barriers to their highest in more than a century, leading to a plunge in world financial markets. Brent futures dived by $5.30, or 7.6%, to $64.84 a barrel. U.S. West Texas Intermediate crude futures lost $5.47, or 8.2%, to $61.48. Both benchmarks were on course for their biggest weekly losses in percentage terms in more than two years. Gold gained on Friday after reaching a record high in the previous session, as investors turned to the safe-haven asset amid heightened global trade conflict following China’s retaliation with new tariffs against U.S. President Trump’s extensive levies. Spot gold firmed 0.5% at $3,128.76 an ounce, after falling 1% earlier in the session, while U.S. gold futures were up 0.9% at $3,151.20. Spot prices hit a record $3,167.57 on Thursday as investors rushed for safe-haven assets after Trump announced tariffs against major trading partners. They remain on track for a weekly gain.