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Trade war fears wiped more than 1,100 points off the Dow in just two days. It was Wall Street's worst week in more than two years.Investors are increasingly worried that President Trump's crackdown on China will trigger a fierce response that darkens the otherwise bright economic outlook.The Dow dropped 425 points, or 1.8%, on Friday, sinking back into a "correction" — a decline of 10% from the all-time high in January. The Dow finished at its lowest point since November.All three major indexes took their biggest weekly tumbles since January 2016.The market failed to stage a rebound from Thursday's plunge, which erased 734 points from the Dow.China vowed on Thursday that it would fight a potential trade war "until the end.""We have this general freak-out. We don't know the next shoe to drop on trade," said Michael Block, chief strategist at Rhino Trading Partners.Investors were further rattled when China's ambassador to the United States signaled that China could ease purchases of US bonds in response to Trump's tariffs. "We are looking at all options," Ambassador Cui Tiankai told Bloomberg News.China is America's biggest creditor, with more than trillion of Treasury bonds."We've been told for our entire careers that trade wars made the Great Depression worse. And we believe it," said Bruce McCain, chief investment strategist at Key Private Bank.Related: Trade fears add to concern of a downturnAsian markets were rocked overnight after China vowed not to back down in a potential trade war with the United States. Japan's Nikkei 225 plummeted 4.5%, and the Hang Seng in Hong Kong lost 2.5%.On Thursday, the market sold off after Trump announced plans to impose tariffs on about billion of Chinese imports to retaliate for theft of intellectual property.China said hours later that it "is not afraid of and will not recoil from a trade war." Officials in China detailed a plan to retaliate to Trump's aluminum and steel tariffs by imposing their own tariffs on about billion worth of imports of US goods.Trump, who often uses the stock market as a barometer for his success, shrugged off the market turmoil."I think the stock market is going to be great," he said Friday at the White House after a reporter asked about the sell-off. "The stock market is way up. When I came into office, the stock market was from a different planet."Despite the recent struggles, the Dow remains up about 30% since Trump's election.Related: China: We would fight a trade war 'to the end'The worry is that a tit-for-tat escalation between the two largest economies in the world will ruin the solid economic backdrop. Investors had been banking on strong growth this year, but a slowdown in trade and dented business and consumer confidence could change that outlook drastically.Barclays warned in a report that a trade war would drown out the benefits of Trump's tax cuts, which helped power Wall Street's euphoric rally."The administration is moving forcefully into the anti-trade portion of its policy agenda," Barclays economist Michael Gapen wrote in a report on Friday.But it's too early to assess the impact. Bullish investors hope that the administration will soften its tough stance with China, similar to how tariffs on steel and aluminum imports were later scaled back significantly."The threat of a misstep remains high," Raymond James Washington policy analyst Ed Mills wrote in a report, but there is an expectation that "these actions will be watered down or mitigated" in the coming weeks.Key Bank's McCain thinks it's more likely the market is going through a correction than entering a bear market. He pointed to robust corporate profits and the strong economy, which enjoyed robust job growth in February."If anything, a few weeks ago we worried about the economy overheating and inflation picking up," McCain said.The-CNN-Wire 3867

There is a lot of concern along the Gulf Coast right now. Two tropical systems are headed for the area at the same time, potentially impacting land on the same day.It's very rare according to the National Weather Service (NWS), something we haven't seen in decades.What's most concerning, is the amount of people in the path of the storms.“The number of people that could be impacted by these two systems is huge, you know, from the northern part of Texas, throughout the entire coast of west side of Florida and the panhandle as well,” said Joel Cline, a meteorologist and NWS Tropical Program Coordinator.Large amounts of rain, storm surge and wind are threatening the Gulf Coast early next week.So, could these systems merge? It's something called the Fujiwhara effect. It's named after a Japanese meteorologist who first described the effect. It's something that happens in the pacific with typhoons.“That’s where two come in close contact and then they move around each other counterclockwise,” said Cline. “That's not going to happen in this one.”There is another potential impact of these systems being close to each other.“So, when you have two of these in one area, then the descending air may get into the other one and help weaken it or make the other one stronger,” said Cline.There's still a lot of time for things to change. Regardless, meteorologists say people in the paths of these storms need to be hurricane ready.“Labor Day is essentially the halfway point and so we've got a lot more hurricane season left and what we’ve already been through,” said Cline. 1584

Top Senate Republicans slammed President Donald Trump for his statement backing Saudi Arabia in the wake of the death and dismemberment of Washington Post journalist Jamal Khashoggi.The chairman of the Senate Foreign Relations Committee, Tennessee Republican Sen. Bob Corker, tweeted?Tuesday, "I never thought I'd see the day a White House would moonlight as a public relations firm for the Crown Prince of Saudi Arabia."The criticism follows an official statement?the White House released Tuesday, under the subject line "Statement from President Donald J. Trump on Standing with Saudi Arabia.""Our intelligence agencies continue to assess all information, but it could very well be that the Crown Prince had knowledge of this tragic event -- maybe he did and maybe he didn't!" Trump writes.The President continues, "we may never know all of the facts surrounding the murder of Mr. Jamal Khashoggi," and said, "In any case, our relationship is with the Kingdom of Saudi Arabia. They have been a great ally in our very important fight against Iran."Khashoggi, a Saudi journalist and Virginia resident, was killed last month at a Saudi consulate in Turkey. He was a frequent critic of the Saudi regime. The Saudis initially denied any knowledge of his death, but then later said a group of rogue operators were responsible for his killing. But US officials have speculated that such a mission -- including the 15 men sent from Riyadh, Saudi Arabia, to murder him -- could not have been carried out without the authorization of Saudi leader Crown Prince Mohammed bin Salman.Later in the day at a news conference, Trump said he was "not going to destroy the economy of our country" over Khashoggi's death by giving up arms deals to Saudi Arabia.South Carolina Republican Sen. Lindsey Graham wrote in a series of?tweets Tuesday, "One thing I learned during the Obama years is that when you look the other way regarding problems in the Middle East, it seldom works out."Graham said former President Barack Obama "chose to look the other way as Iran took increasingly provocative actions," and said, "Each time it led to even worse Iranian behavior and created even larger problems for the future.""Likewise, it is not in our national security interests to look the other way when it comes to the brutal murder of Mr. Jamal #Khashoggi," Graham continued.After Saudi Arabia admitted that Khashoggi had been killed in its Istanbul consulate, five high-ranking officials were dismissed, including bin Salman's media chief and the deputy head of the Saudi intelligence service.Kentucky Republican Sen. Rand Paul, a member of the Senate Foreign Relations Committee, voiced his disagreement with the President, and tweeted, "The President indicates that Saudi Arabia is the lesser two evils compared to Iran and so the US won't punish Saudi Arabia for the brutal killing and dismemberment of a dissident journalist in their consulate.""We should, at the very least, NOT reward Saudi Arabia with our sophisticated armaments that they in turn use to bomb civilians," Paul continued.He also said of the statement released today by the President, "I'm pretty sure this statement is Saudi Arabia First, not America First," and speculated that national security adviser John Bolton wrote the statement.Paul said he would "continue to press for legislation to stop the Saudi arms sales and the war in Yemen."Former 2012 Republican presidential nominee and now Utah Senator-elect Mitt Romney, tweeted: "America can't excuse & minimize the brutal & gruesome murder of Jamal Khashoggi, a US resident & columnist. Our country is defined by human values, by principle above convenience, & by commitment to morality.""We must subject the perpetrators of this outrage to withering sanction," Romney continued. 3852

There is an arrest warrant out for actress Rose McGowan for felony drug possession.According to a statement from Metropolitan Washington Airports Authority Police Department, the warrant was issued in February for an incident alleged to have occurred in January near Washington. DC."On February 1, 2017, the Metropolitan Washington Airports Authority Police Department obtained an arrest warrant for Rose McGowan, an actress from Encino, California, for possession of a controlled substance," the statement read. "The felony charge stems from a police investigation of personal belongings that tested positive for narcotics and were left behind on United flight 653 arriving at Washington Dulles International Airport on January 20, 2017."Authorities said they have been trying to reach McGowan to get her to court. 823

Tijuana, B.C. (KGTV) — As Christmas approaches, decorations are up around Tijuana but much of the city has shut down. According to ABC 10News’ media partner Televisa, the state of Baja California has had almost 27,000 COVID-19 cases and nearly 5,000 deaths since the start of the pandemic.For comparison, San Diego County's had startling 97,549 cases but far fewer deaths. As of Thursday, 1,103 deaths had been reported.On Thursday morning, ABC 10News spoke to Televisa anchor Estephania Báez about how hospital capacities across the border are maxed out, pulling the city out of its less restrictive orange tier and back into its most restrictive red tier. That hasn’t happened since the summer.“The difference between now and then is that now people don't have fear with COVID-19 here and [people have] to go to work so they prefer to [become] positive rather than to lose a day of money,” she added.Baez said there's concern over both apathies to wearing masks and resistance to any news of a vaccine. “They don't even want to get vaccinated. We have heard in several places that people are afraid and they don't trust even the authorities,” she told ABC 10News.Baja California's red tier restrictions are in place through at least Dec. 20, meaning widespread closures. “That includes schools, gyms, spas, museums, pools, movie theaters, churches, and amusement parks,” said Baez. Restaurants and hotels can operate at a very limited capacity.Televisa also reports that the high cost of testing and limited locations to get testing done continues to be a deterrent for many people. 1592