Markets fell on Friday, with both the S&P 500 and Nikkei 225 tumbling 2.8 percent.
Most European markets were closed for a holiday.
“After one of the best months in history, it’s not overly surprising to see some profit taking here,” said Matt Miskin, co-chief investment strategist at John Hancock Investment Management.
News that the US government is considering proposals for punishing China for its handling of the COVID-19 pandemic added to downward pressure on stocks.
Miskin said that “even more strains to supply chains in the form of tariffs is rightfully being priced into the market negatively”.
Indeed, the strain on the US economy is already showing in the Institute for Supply Management's manufacturing index, which fell to 41.5 in April from 49.1 in March. The index for new orders dropped 15.1 to 27.1, the biggest monthly drop since 1951.
The IHS Markit US manufacturing PMI fell to 36.1 in April from 48.5 in March.
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