Market plunges | Trump says get out of China | Xi the 'enemy?'

Stocks plummeted on Friday as trade war tensions escalated.

VIEW IN BROWSER | SUBSCRIBE FRI, AUG 23, 2019 EVENING BRIEF AS OF FRI, AUG 23, 2019 • 04:01 ET DJIA 25630.52 -2.37% -621.72 S&P 500 2847.46 -2.58% -75.49 NASDAQ 7751.77 -3.00% -239.62   Most Active DOW NAME LAST CHG %CHG AAPL 202.64 -9.82 -4.62% MSFT 133.39 -4.39 -3.19% INTC 44.96 -1.82 -3.89% S&P 500 NAME LAST CHG %CHG GE 7.97 -0.22 -2.69% AMD 29.54 -2.36 -7.40% BAC 26.47 -0.72 -2.65% NASDAQ NAME LAST CHG %CHG AMD 29.54 -2.36 -7.40% AAPL 202.64 -9.82 -4.62% MSFT 133.39 -4.39 -3.19% EDITOR'S NOTE Federal Reserve Chairman Jerome Powell breezed through his high-stakes speech today without so much as rippling the markets, but then came President Trump's response. Trump's tweet ordering U.S. companies to look for alternatives to China sent the Dow plunging. Earlier in the day, China had announced tariffs on $75 billion worth of  U.S. goods and resumed duties on U.S. automobiles. The market had largely shrugged off this salvo until Trump amped up his rhetoric in response. For his part, Powell took  the podium at the central bank's annual conference in Jackson Hole, Wyo., under extreme pressure to promise something.  But he only promised the Fed would act as appropriate to market conditions to keep the aging U.S. economic expansion alive. It was an even-keeled and predictable speech, and it proved Powell could punt, even if he may not be able to putt, as Trump had complained in a tweet earlier in the week.   Trump has been setting up the Fed as a scapegoat for whatever happens to the U.S. economy as he continues swapping tariffs with China. But markets reacted positively to Powell, despite an expectation that he might disappoint.   "The speech was rather short and uncontroversial," wrote J.P. Morgan's Michael Feroli in a note to investors.   But Trump's reaction to both Powell and China was not. And it signaled that he is nowhere near a negotiated trade agreement or even another truce with China.   Any U.S. business in China, or doing business with China, has got to be thinking about their supply chains – regardless of whether Trump actually has the authority to order them out. And anyone dreading a recession has more to fear.   Yet, for all anyone knows, Trump's extremes could moderate with another tweet. Uncertainty floods the world with his every keystroke. What is the Fed to do?   "This is metastasizing," wrote Mark Zandi, chief economist Moody's Analytics. "Businesses of all stripes have to be nervous about this."    Enjoying the CNBC Evening Brief newsletter? Tell us how we're doing and what we can do better by filling out this simple survey. Al Lewis | CNBC Markets Editor @tellittoal TOP NEWS  Dow plunges after Trump orders US manufacturers to move from China Trump says he's ordering American companies to immediately start looking for an alternative to China China will retaliate with tariffs on $75 billion more of US goods and resume auto tariffs Powell says there's no 'rulebook' for trade war, pledges to 'act as appropriate' to sustain economy In a bad sign for trade talks, Trump deploys a new label for China's Xi – 'enemy' Tesla, Ford have the most to lose among US carmakers on China's new round of tariffs Yield curve inverts again on Friday as Trump reignites fears the trade war will lead to a recession Supreme Court Justice Ruth Bader Ginsburg undergoes cancer treatment for pancreatic tumor Here's a list of American products targeted by China's new tariffs David Koch, billionaire industrialist and libertarian political activist, dies at 79     TOP VIDEO Watch CNBC's full interview with St. Louis Fed President James Bullard   SPECIAL REPORTS These tech stocks can shield your portfolio if a recession hits, trader says Don't 'sift through the trash' for retail bargain buys, focus on these top performers, strategist says   Unsubscribe Manage Newsletters Terms of Service Join the CNBC Panel Digital Products Feedback Privacy Policy   © 2019 CNBC LLC. All rights reserved. A property of NBCUniversal. 900 Sylvan Avenue, Englewood Cliffs, NJ 07632 Data is a real-time snapshot *Data is delayed at least 15 minutes. Global Business and Financial News, Stock Quotes and Market Data and Analysis. Data also provided by THOMSON REUTERS