Dow Falls On Renewed Trade War Fears

US markets have seen a mixed day of trading, with the Nasdaq finishing at another record, but the Dow falling on revived worries of a trade war.

The Dow Jones dropped 0.6 percent to 25,178. The Nasdaq rose 0.4 percent to 7,588, while the S&P 500 lost 0.1 percent to 2,783.

Wall Street stocks opened well on continued positive momentum from last Friday's strong jobs report, but the tone quickly shifted as investors took note of sharpening rhetoric on international trade.

European Trade Commissioner Cecilia Malmstroem said the trading bloc would "stand up to bullies" after President Donald Trump threatened to tax German cars if the European Union doesn't lower barriers to US products.

Trump provoked the Europeans still further in a tweet saying his Commerce Secretary Wilbur Ross would speak with the EU side "about eliminating the large tariffs and barriers they use against the USA".

Art Hogan, chief market strategist at Wunderlich Securities, said the exchanges reignited worries about a trade war that had receded somewhat after Trump indicated more flexibility on imported steel and aluminium.

"Now, when we start to hear about possible retaliation, it becomes a concern again," Hogan said. (AFP)