By Victor Reklaitis, MarketWatch , Ryan Vlastelica

Jobless claims tick higher but remain near multidecade lows

U.S. stocks fell Thursday, posting a broad decline as the Trump administration's plans to announce new trade restraints against China renewed fears about a potential trade war that could dent economic growth.

Investors also continued to digest the latest policy statement by the Federal Reserve and remarks by Chairman Jerome Powell, which offered an unclear signal about the central bank's policy path going forward, and as ongoing stock weakness at Facebook weighed on the technology sector.

What are the main benchmarks doing?

The Dow Jones Industrial Average fell 307 points, or 1.3%, to 24,370. The S&P 500 lost 29 points, or 1.1%, to 2,683. The Nasdaq Composite Index lost 95 points, or 1.3%, to 7,251.

The day's losses were broad, with all 11 S&P 500 sectors down on the day.

For the week, the Dow is down 2.3%, the S&P has lost 2.6%, and the Nasdaq is down 3.1%. All three are poised for their second straight weekly decline, as well as their third weekly drop of the past four. The Nasdaq is set for its worst weekly performance since early February.

What's driving markets?

The Trump administration plans to release on Thursday (http://www.marketwatch.com/story/trump-set-to-propose-new-trade-restraints-tariffs-against-china-on-thursday-2018-03-20) a package of proposed punitive measures aimed at China. The package will reportedly include tariffs on imports worth at least $30 billion. China's government criticized the planned actions and said it would take "all necessary measures" (http://www.marketwatch.com/story/china-talks-tough-on-trade-vows-action-against-us-tariffs-2018-03-22) to respond.

Trade has been a primary driver of market sentiment for weeks, ever since President Donald Trump unexpectedly proposed tariffs on steel and aluminum earlier this year. Investors are concerned that such actions could be met by retaliatory measures by major trading partners.

See:Trump's most market-rattling trade blasts are still to come, warns Pimco (http://www.marketwatch.com/story/trumps-most-market-rattling-trade-blasts-are-still-to-come-warns-pimco-2018-03-16)

And read:How investors can protect against a trade war--in one sentence (http://www.marketwatch.com/story/how-investors-can-protect-against-a-trade-war-in-one-sentence-2018-03-14)

The Fed also remained in view a day after it lifted a key interest rate but stuck to a script for three rate increases in 2018 (http://www.marketwatch.com/story/fed-lifts-rates-in-powells-first-meeting-says-outlook-has-strengthened-2018-03-21) and suggested three additional ones next year. Some investors had expected four hikes this year, and the Fed previously indicated a mere two increases in 2019.

The U.S. central bank also gave a more upbeat forecast for the U.S. economy.

Read more:Fed hawks and doves send different signals on rates and inflation (http://www.marketwatch.com/story/why-the-fed-might-be-a-little-more-worried-than-it-lets-on-about-inflation-2018-03-21)

And see:Powell would sooner dismiss his colleagues than Trump's tax cut (http://www.marketwatch.com/story/powell-would-sooner-dismiss-his-colleagues-than-trumps-tax-cuts-2018-03-21)

Facebook(FB) fell 2%, extending a period of sharp weakness. Based on Wednesday's closing price, the stock is down 8.5% this week, on track for its biggest weekly decline since March 2014.

Read:Why Facebook shares are 'dead money' for rest of 2018 (http://www.marketwatch.com/story/facebook-shares-are-probably-dead-money-for-rest-of-2018-chart-watcher-2018-03-21)

The social-media giant has been enduring a firestorm and stock selloff (http://www.marketwatch.com/story/facebook-sheds-more-than-40-billion-of-market-cap-as-investors-flee-stock-2018-03-19) after data-mining company Cambridge Analytica reportedly used the personal details of 50 million Facebook users without authorization (http://www.marketwatch.com/story/facebook-sparks-international-furor-over-third-party-access-to-user-data-2018-03-18). On Wednesday night, Facebook CEO Mark Zuckerberg apologized Wednesday night (http://www.marketwatch.com/story/mark-zuckerberg-sorry-for-facebook-data-scandal-says-on-cnn-hed-be-willing-to-testify-2018-03-21) for the controversy during an interview with CNN, and said he'd be willing to testify before Congress.

Don't miss:Europe is better at protecting data than the U.S.--thanks in part to the Stasi (http://www.marketwatch.com/story/why-europe-does-a-better-job-of-protecting-online-privacy-than-the-us-does-2018-03-20)

Congressional leaders reached an agreement (http://www.marketwatch.com/story/congressional-leaders-agree-on-13-trillion-spending-bill-to-avert-shutdown-2018-03-21) Wednesday night on a spending bill that would fund the government until October, and lawmakers now have two days to consider and pass the 2,232-page bill before the government's current funding expires at 12:01 a.m. Saturday.

What are strategists saying?

"There were things in the Fed's statement that could appease both hawks and doves, and the market is trying to figure out if the new chairman is more hawkish or dovish," said Randy Hare, director of equity research at Huntington Private Bank. "However, the market is more afraid of trade than the Fed right now. If companies keep going back and forth with tariffs or other measures, that could develop into a trade war, and depending on how far that goes, the market impact could be really severe."

He added, "it's too early to say what the fallout will be, but this is what the market is trying to sniff out, and the uncertainty around that is the biggest deal in the market right now."

What are other markets doing?

The ICE U.S. Dollar Index edged lower, building on the prior day's drop. Dollar bulls have found themselves disappointed (http://www.marketwatch.com/story/dollar-slips-as-traders-wait-for-fed-hints-on-future-rate-rises-2018-03-21) by the Fed sticking to its guidance for three total rate increases this year.

European equities traded in the red, while Asian markets mostly closed with losses (http://www.marketwatch.com/story/asian-markets-strengthen-after-fed-raises-rates-2018-03-21).

Gold futures gained, and oil futures dropped.

Which stocks are in focus?

Guess Inc.'s stock (GES)surged 17% a day after the clothing seller posted better-than-expected quarterly results ().

AbbVie Inc. (ABBV) fell 9% after it said it wouldn't seek accelerated approval for a lung-cancer drug after a mid-stage trial.

Omeros Corp. (OMER) surged 42% after a spending bill that benefits its cataract surgery (http://www.marketwatch.com/story/omeros-shares-surge-63-on-spending-bill-that-benefits-its-drug-2018-03-22) drug.

Conagra Brands Inc.(CAG) reported adjusted third-quarter earnings (http://www.marketwatch.com/story/conagra-hurt-by-higher-costs-inventory-cuts-2018-03-22) that beat expectations. Shares rose 0.6%.

Olive Garden parent Darden Restaurants Inc.(DRI) fell 4.2% after it reported third-quarter sales that missed expectations (http://www.marketwatch.com/story/olive-garden-parent-darden-tops-profit-estimates-but-sales-fall-slightly-short-2018-03-22).

Accenture PLC(ACN) reported second-quarter earnings and sales that topped analyst forecasts (http://www.marketwatch.com/story/accenture-beats-profit-and-revenue-expectations-raises-outlook-2018-03-22). Shares fell 3.7%.

Wynn Resorts Ltd. (WYNN) fell 1.9% after Stephen Wynn, the founder and former chief executive, disclosed the sale (http://www.marketwatch.com/story/wynns-stock-falls-again-after-steve-wynn-discloses-sale-of-739-million-worth-of-stock-2018-03-22) of about one-third of his stake in the casino operator.

Pandora Media Inc. (P) jumped 5.9% after Raymond James upgraded the stock to strong buy (http://www.marketwatch.com/story/pandora-stock-jumps-after-raymond-james-upgrades-to-strong-buy-praises-adswizz-acquisition-2018-03-22) from market perform.

What economic reports are in focus?

Initial U.S. jobless claims rose by 3,000 to 229,000 in mid-March (http://www.marketwatch.com/story/jobless-claims-edge-up-3000-to-229000-2018-01-18), but they remain near the lowest levels since 1970. And the number of people collecting benefits fell to a fresh 45-year low.

At 9:45 a.m. Eastern, Markit is due to deliver March data on manufacturing and services, then the Conference Board's report on leading indicators is slated to arrive at 10 a.m. Eastern.

(END) Dow Jones Newswires

March 22, 2018 09:49 ET (13:49 GMT)

Copyright (c) 2018 Dow Jones & Company, Inc.