US stocks plunge on growth concern, US-China trade tension

US stocks plunged, with technology shares again bearing the worst of the selling amid US-China trade tensions and as the latest batch of economic data added to concern that growth has peaked.

The S&P 500 is on course for a weekly decline of 4.6 per cent, which would be the worse on a closing basis since March. The benchmark index fell to session lows after breaching the 2,650 level that had stopped earlier declines.

The trade outlook appeared to take a negative turn, with the US alleging that Huawei breached sanctions to do business with Iran.

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Stocks had opened higher after the November jobs report showed moderation in the labor market, giving succor to proponents for a slower pace of Fed interest-rate increases.

Treasuries fluctuated on the data before settling higher as risk aversion increased. The dollar remained lower.

“After coming off craziness yesterday, it’s really a time to look ahead,” said Joe “JJ” Kinahan, chief market strategist at TD Ameritrade. “I still fear the last half-hour or so only because any weakness in the last half-hour and you could see some selling into the close as people want to take off risk into the weekend.”

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US payrolls and wages rose by less than forecast in November while the unemployment rate held at the lowest in almost five decades.

The report comes with financial markets on edge over whether Fed Chair Jerome Powell is closer to pausing.

Market-implied US rate expectations have been sinking amid the tumult in equities, but hawkish views still exist among Fed officials, including Powell.

He delivered a bullish assessment of the US economy and the job market Thursday night.