Welcome to the News Hour. Stocks were in freefall again today, ending the market's worst week

in years as a trade war with China heated up over tariffs. The losses were widespread, with the

Dow down 5.5% today. The NASDAQ dropped nearly 6% and has now entered bare market territory,

meaning it's down at least 20% from its recent high.

And the benchmark S&P 500 dropped by nearly 6%. That's more than 10% in the last two days alone.

It came in spite of a strong jobs report that came in much higher than expected,

228,000 new jobs last month.

The markets were focused on the escalating trade battles, dropping sharply after China responded

to President Trump's Wednesday tariffs with their own, 34 percent on all imported U.S.

goods.

Markets also fell after Federal Reserve Chair Jerome Powell said tariffs are expected to lead to higher prices

and to weaken the economy.

Inflation is going to be moving up and growth is going to be slowing, but it isn't really,

to me it's not clear at this time what the appropriate path for monetary policy will be.

For more on the latest, I'm joined now by Justin Wolfers.

He's Professor of Economics and Public Policy at the University of Michigan.

Professor Wolfers, welcome back to the News Hour.

Thanks for joining us.

I wish I was here with good news, mate.

Well, let's talk about the latest news.

As you saw there, another tough day for the markets and reaction to those tariffs.

Tell me how you're looking at this. I mean, how much can you really read into these first

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