Markets fall on renewed fears of trade war

Markets fell on Wednesday.

The S&P 500 fell 0.6 percent, the STOXX Europe 600 fell 0.2 percent and the Nikkei 225 fell 0.9 percent.

Stocks in Europe initially traded higher after European Central Bank President Mario Draghi said its bond-buying program will likely continue if underlying inflation in the region remains subdued.

However, stocks turned down as fears of a potential trade war resurfaced after President Donald Trump announced that his administration will impose tariffs to trim the US trade deficit with China.

With upcoming personnel changes in the Trump administration, Art Hogan, chief market strategist at Wunderlich Securities, suggested that policy mistakes and trade protectionism are concerns.

“Will the new people be more protectionist?” he asked. “Right now the economy and earnings are solid, but are we going to make a trade or policy mistake that could slow earnings or lead into a recession that will turn this market over?”