The Dow Jones Industrial Average of big U.S. companies closed with a loss of 769 points Friday, falling 1.8 percent.
The S&P 500 index fell 1.1 percent, and the tech-heavy Nasdaq Composite fell 1.3 percent.
Oil prices had been trending down during President Trump’s trade moves as higher tariff levels took the steam out of future global trade flows and international orders and shipments were scaled back.
Higher energy prices could factor quickly into higher inflation in the economy. While tariffs can take months to factor into price increases as companies work through already purchased inventories, increased shipping costs can translate to prices more rapidly.
“The recent good performance on inflation will be at risk from this and from the full impact of tariffs as they filter into the data,” analysts for Deutsche Bank wrote in a Friday analysis.
