the president in those remarks. thank you so much for joining us this afternoon. i'm sandra smith. catch bill and me back here tomorrow live at 9:00 a.m. on american's newsroom. here's trace gallagher in for shepard smith. >> president trump laying down the law on china, announcing new import taxes worth tens of billions, but the chinese threatening to respond. we're hearing warnings of a potential trade war. we'll see how it acts your expenses. republicans on the house intel committee releasing a report they did not find evidence that the trump team colluded with the ed but the democrats say they will keep investigating. breaking news today, trump's lead lawyer in the russia investigation steps down. that's in this hour of "shepard smith reporting."

>> trace: president trump said he would like to speak with robert mueller. there's word john dowd advised the president not to go after the special counsel. the president has mentioned mueller by name in recent tweets about the investigation which she calls a witch hunt. catherine herridge spoke to john dowd. she's live in washington. catherine? >> thank you. exclusively speaking to fox news and providing this statement, john dowd said he resigned as the president's lead outside attorney on the russia probe and the president graciously accepted. the president has a terrific case and has proved it to robert mueller and his team in spades. dowd defended his statement calling on rod rosenstein who oversees the special counsel investigation to end it. dowd said that statement is no different than what i told

mueller and his investigators on multiple occasions. he said i'm so proud of the president's transparency and how anyone could accuse him of obstruction is beyond me. he closed by saying i love him and wish him well. the president has assembled his own outside team of lawyers. he added joe digenova that lended credibility that the justice department framed mr. trump. dowd was the one that championed providing witnesses and records on a voluntary basis to the special counsel. a key legal argument is whether the president was in his authority in fairing james comey. analysts questioned why the special counsel needs to interview the president when 0 other witnesses or records could answer though questions. >> trace: and what is happening with the house intelligence committee? >> those members voted along

party lines to release this report for declassification. the won't won't get to see it for several weeks. in a statement, the senior republican that led the probe confirmed that russia and its proxies used cyber attacks, social media to accelerate the impact. this pose as future threat to u.s. elections, including primaries underway. it's critical to release this information now to protect our country and elections from foreign interference. the ranking democrat, adam schiff says they have dozens of lead to pursue, including an interview with christopher wiley when i talked to them and cambridge analytica. >> suffice it to say, the majority was not interested in conducting a further investigation, even when the flaws in what we have done so far have been -- become so apparent over the course of the

last week. we're very pleased that witnesses have decided to continue to cooperate with our committee even if the majority will not be participating. >> so the democrats are going to continue their investigation. they're going to bring in witnesses and bring in documents. the bottom line is they don't have control of that committee. so there will be no public hearings unless they have agreement from the republicans. there will be no additional report sanctioned by the majority, trace. >> trace: catherine herridge live in washington. thanks. let's bring in alexi, the deputy news editor for axios. welcome to you. you look at this john dowd resigning or being pushed out, whatever it was. the writing was on the wall. you bring in joe digenova, right? you know the writing is on the wall. does it matter at this point whether he was pushed out or resigned on his own? >> well, it doesn't matter whether he was pushed out or resigned. obviously there was tension

growing with john dowd and donald trump. john dowd wanted trump to be more passive in his response to the mueller probe. whereas folks like steve bannon, who are surrounding trump before wanted him to play hardball. we saw recently how trump has entered himself into this, calling mueller out by name in his tweets for the first time that shows the trump strategy, being aggressive and john dowd, saying be more passive. don't attack the special counsel publicly. but john dowd went rogue over the weekend and called open mueller to end his problem. maybe in retrospect maybe he was trying to keep his job. >> trace: and he get more aggressive in the waning days. joe digenova is going to make this more aggressive. the big problem here, the president's opinion that he is

against the scope of this investigation, how wide it is. the business documents of trump and that's where this whole thing gets into a very explosive territory with the president. >> right. exactly. he drew the red line himself. president trump said if mueller investigates my family's finances or things of the trump organization, that's outside of the scope for mueller's probe. he obviously has done that in recent weeks. so trump not only sees this getting closer to him and his family, it's crossing the red line that he drew. that is making trump act out more explicitly. as we mentioned the new lawyer, trump loves people that go on tv and defend him. that's what he said about chris ladell, that he would represent him well on tv. now he's surrounding himself with these lawyers that are willing to play hardball with mueller, not only to trump but in public and on tv. >> trace: sure, you have ty cobb

and secula and digenova. alan dershowitz has said there shouldn't even be an investigation in the first place. we should make clear that john dowd is very much a supporter of the president. he's very, in his mind, he does not believe special counsel has any basis or merit at all. >> right. the way he went about advising trump was the best legal advice and telling him to be more passive. the larger issue, you have the advice to be more passive and folks like ty cobb saying it will wrap up and it's not. so trump is getting to a point that he sees mueller acting outside the proper scope and it's not ending any time soon. he's taking matters to his observe hand. >> what do you make of the house intel that says there was no collusion. but clearly russia went all out.

when it comes to meddling in the 2016 election, they said russia was all in on this. >> right. that is sort of the larger issue. we've seen how partisan this how intel committee has become. democrats that started the show are already criticizing republicans for releasing this the way they have. we can expect the democrats and the republicans even though they're in the same committee won't be working together in a way that is cohesive moving forward. the larger issue is election hacking. if both sides of the aisle can agree this is a problem, we need to figure out a way to move forward on this. one silver lining, the spending bill includes $687 million to address the issue of russian interference in our elections. mike pompeo has said that is something to worry about for the mid-terms moving forward. >> trace: thanks, alexi. thanks for joining us. >> thanks for having me. >> trace: president trump following through on a promise

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>> trace: president trump says he plans to slap billions of taxes on chinese products coming to the u.s. he says he's trying to close a huge trade deficit.

investors don't seem enthusiastic at the moment. the dow is down 2%. about 484 points. it was just down 500 seconds ago. the president says the proposed tariffs will make the country a stronger, richer nation. chinese officials saying they will talk all measures to defend their countries and some american business groups are warning of a possible trade war. the chief white house correspondent john roberts is live at the white house. john? >> good afternoon. the dow doesn't appear to like this at all. the president has talked about this a long time. back on the campaign trail, it was a favorite subject and favorite pet peeve was the u.s. trade deficit with china. so today the president directing the u.s. trade representative, robert lighthieser to take 15 days to look at goods. the president mentioned a $60

billion figure but we're told it might not go that high. the tariffs are not punishing china but meant to recover years of unfair trade practices by china. here's what the president said. >> we're sending a section 301 action. i'll be signing it right here, right now. i'd like to asked bob to say a few words about the 301 and where we are in that negotiation. we're doing things for this country that should have been done for many, many years. we've had this abuse by many countries put together in order to take advantage of the united states. we don't -- we're not going to let that happen. it's probably one of the reasons that i was elected, maybe one of the main reasons. we're not going to let that happen. >> in addition to the tariffs, the president wants to impose

investment restrictions on china. the white house is concerned that china is gobbling up all sorts of u.s. technology companies so it will own the technology of the future. the white house says that is something that stifles innovation. so it's something they want to limit. we don't know what the investment restrictions will be. as for china, they have warned that they could retaliate against any tariffs imposed. they seem to be in a bit of a mood to compromise. listen to what the chinese premier said earlier today. >> what i hope is that we can act rationally, rather than being led by emotion in order to avoid a trade war. our import tariffs by world standards are at a median level. we're willing to adopt a more open posture and reduce tariffs for popular consumer products. >> chinese officials warn it's impossible for the united states and china to level the playing field on trade. there's always going to be a

deficit, which the president would like to erase sometime. trace, i have to point out, the white house is not worried about a trade war. the thinking here is that china needs the united states more than the united states needs china and the the chinese will not be willing to risk that relationship by imposing retaliatory tariffs. we shall see. >> we shall see. a fair point. john roberts live at the white house. it has been bad all day. stocks have been down all day long after the news that president trump plans to tax some chinese imports. the dow is 526 points down. let's get to deidra bolton from the fox business network. >> we're seeing a lot of pressure on the markets. one thing that we can remember, the government doesn't necessarily pay these tariffs, we pay them, consumers pay them with all kinds of goods that are brought in. we heard the president say in passing as he was agreeing to president $50 billion worth of

those tariffs, this is one of many. he said it as he was walking away. i think it just stresses that this is one step that this president is concerned about. so as far as the market reactions, you take a look at the manufacturing stocks. you'll see the pressure. that's write the dow is so long. look at john deere, for example. caterpillar, boeing. all of these stocks and these manufacturing sectors, it's usually the one that feels the print of tariffs. a lot of trade experts saying, listen, don't be surprised if the chinese retaliate. for example, when we try to export live hogs, soy products, sorghum, all of that is going to eventually hurt or midwest and would touch a lot of the manufacturing stocks as well that i just talked about it so a lot of this of course is about chinese i.p. and this allegation that the chinese have really been stealing a lot of our tech property.

tech stocks moving lower today. i'll point out a lot of that is extended pressure from facebook. we heard from the founder and the ceo, mark zuckerberg, last evening, talking about the steps that facebook is taking to ensure data integrity for users after the second breach or second issue in about 18 months time. manufacturing stocks and tech stocks is what is weighing down the market. >> trace: we're going to talk about facebook here in a minute. but you talk about china's tariffs and the president's lawyer resigning. sent stocks tumbling more. >> yes. all of this represents instability and uncertainty for investors. it's a cliche' but it's known. investors like known data points. this is adding another element. so many people are saying look, this mueller investigation, no

matter what your opinion is drags on a long time. it's a distraction. that means it's a distracts for investors. the fed raising rates. that's a tightening signal for investors as well. just saying that okay, the fed will begin to pump the brakes slightly. so there's a lot of activity unknowns entering. we can't forget, we had nine years of a bull market. we can't be surprised after a decade of strength, investors are getting shaken from time to time. back to you. >> trace: it never goes up 40 or 50. just goes down 500, goes up 300. >> this is the new normal. >> trace: yes. the new normal. deidra bolton, thank you. the house passing an enormous spending bill. more than 2,200 pages. members just got a first look at it. 2,200 pages. does anybody know what is in

this thing? and where are your cash -- where is your cash going to go? that's next. air. we didn't use it. wish we got money back on gym memberships. get money back hilarious. with claim-free rewards. switching to allstate is worth it.

>> trace: the house passing a massive spending bill and now in the hands of the senate. they better get to it. senators have till tomorrow night to approve the $1.3 trillion budget and prevent another government shut down. the spending bill is a whopping 2,200 pages long. want that in perspective? the spending bill is about 1,000 pages longer than a typical bible. house members had less than a day to read it. the number 2 democrat, steny hoyer, slammed gop leaders for rolling out the bill so close to the government shut down. >> this was filed 8:00 p.m. last

night. nobody knows what is in this legislation. >> trace: still nancy pelosi voted to pass the bill and now it's the senate's turn. the chief congressional correspondent mike emanuel live with more. hi, mike. >> good afternoon to you, trace. there were some complaints about price tag and process. plenty of votes to pass it in the house and now it's on to the senate. what is in it, what is being called the largest investment in our national security in 15 years or so, about 655 billion for that. securing our homeland, about $48 billion for homeland security. $1.6 billion for physical barriers and technology on our southern barreder and $21 billion for infrastructure projects. the house speaker urged his colleagues to get this done for the men and women in uniform. >> let's make sure they put their lives on the line for us with the proper amount of training and equipment so that

we can keep our country and our people safe. vote yes for our military. vote yes for the safety and security of this country. >> as for the senate, it's possible for just one senator to slam on the breaks to slow things down. conservatives rand paul of kentucky has expressed unhappiness for voting on a massive bill so quickly. if they don't slow things down, it could move quickly. >> we feel like the budget agreement and this spending bill is a very important and significant start to turning the tide around. not just for a year but for time to come. >> with it being a $1.3 trillion compromise, 2,000 pages long, there's items both sides could claim as victories and would end the streak of funding the government a few weeks at a

time. trace? >> mike emanuel live on capitol hill. thank you. so now the big spending bill goes to the senate, which has to sign off on it by tomorrow evening. let's bring in jesse byrnes, the associate editor at the hill newspaper. you probably saw steny hoyer with the big stack of papers. looks this big. it's a lot. it's a big bill and goes back to the whole thing where nancy pelosi said about obamacare. you have to pass it to find out what's in it. we didn't know. mike emanuel is giving us bullet points. we don't really know what is in this thing in totality. >> yeah, we heard yesterday, seems like every 15 minutes it was going to be posted this bill. it wasn't posted until last night. yeah, i think you're seeing the backlash in the house at least. you saw 90 republicans earlier today vote against this bill. called an omnibus. a lot of them, conservative republicans were blasting the way it was written and the lack of transparency and the lack of time. the house has a three-day rule

for looking at these kind of bills and they suspended that in this case citing kind of a rushed time line trying to get up to new york for a funeral for lawmaker tomorrow. i think you're seeing pressure here from gop leaders. they don't want a third government shut down in as many months. >> no, i think the senate will pass it and president trump is clearly going to sign it because it has the goodies he wants. it has the military increase that he was so desperate for. it's got $1.6 billion for the wall even though he needs $25 billion. it's not really a down payment. $400 million for opioids. it has some of the things that he wants but there's a lot of weight a lot of heft inside it as well. >> this is the last major legislative vehicle that lawmakers have before they recess over the summer and return to their districts and campaign ahead of the november mid-terms. so both parties are trying to fill this up with as many of their priorities as possible

that they can tout back home over the summer. so you're seeing some tug and pull acknowledging that they got some wins, acknowledging that they want more. this will fund the government through the end of september now going to the senate. i'll echo mike emanuel there. keep an eye on rand paul. he forced the hours long shut down last month. so if it does get pushed to later this week, he would the a key senator to watch. >> trace: you look at tv all day long. the conservatives hate it. it has all of these social programs, the increase in the social programs and they hate this. you know rand paul will moan and grown about this until the deadline friday night. >> yeah. comes on the heels of the last deal. conservatives cried about adding

to the deficit for years. so now that republicans control washington, both chambers when they're in a position to cut costs, they're doing the opposite. passing over trillion dollar tax bill, passing the $3 trillion spending bill. so you're seeing a lot of concessions on the part of the party orthodoxsy. the freedom caucus is saying what's going on here? we're controlling washington. why are we going down this path of big spending in their view. >> trace: speaking of losing money, you can see the dow below you there. 559 down. what do you make of the chinese tariffs? boy, the people on the corner of wall and broad do not like it. >> yeah. i think you're seeing uncertainty president trump saying this will impact $60 billion in tariffs on chinese goods. his advisers say it's closer to $50 billion. uncertainty there. the broader -- this comes on the

heels of him announcing the tariffs of steals and aluminum and his administration saying these countries that are allies will be excepted from that. we want something more targeted for china instead. he will get some support for lawmakers over the latest chinese action for sure. but it's contributing to some economic uncertainty. >> and the chinese may fall in line after all. they're showing signs for this so far. jesse byrnes, the associate editor of the hill newspaper. thank you. >> thanks, trace. >> trace: facebook's ceo mark zuckerberg says he's sorry for a data breach that affected 50 million users. he says he will even testify before congress if he's the right person for the job. i'll talk to an analyst that says that is probably not enough for a lot of facebook users. what more that zuckerberg needs to do right now coming up. morning on the beach was so peaceful.

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>> i'm lea gabrielle. a helicopter crashed on the greats barrier reef. cops say the pilot pulled a woman from the wreckage and tried to revive here while people nearby tried to help the man. no word on the cause. the man who played the original bozo the clown has died. he died from heart disease on tuesday. he played bozo in the 60s and went on to become the local tv host. he was 89. and a moment of silence in belgium marking two years since terrorists attacked a plane station in brussels. the islamic state took responsibility for the attacks. the prime minister laid a wreath

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>> trace: outgoing secretary of state rex tillerson saying his good buys to the state department staffers today after president trump fired him. rex tillerson did not mentioned president trump but he did talk about the tone in washington. >> i'd like to ensure that each of you enact one act of kindness each day towards another person. this can be a very mean-spirited town. [laughter] you don't have to choose to participate in that. >> trace: after months of tension, president trump used twitter to fire rex tillerson and pick cia director mike

pompeo to replace him. and mark zuckerberg says he would testify before congress if he's the right person to answer questions about the data breach. zuckerberg apologized for the breach and said he would be willing to answer questions. >> this was a major breach of trust. i'm really sorry about this. we have a basic responsibility, to protect people's data. if we can't do that, we don't deserve to have the opportunity to serve people. facebook testifies in front of congress regularly. we try to send the person at facebook that has the most knowledge about what congress is trying to learn. if it's me, i'm happy to go. >> trace: it took five days for zuckerberg to respond to the reports of the data break. some say his apology didn't go far enough. let's bring in laura mandero

from "usa today." a couple phrases there. he says this is a grave breach. it is, but he knew about this, laura, three years ago. >> yeah. that's what i think is bother some to users and people that have been following this, have been wondering, you know, it's great that you're going to try to stop and fix this problem, but probably time to stop would have been when you discovered it. facebook, you know, acknowledged that, knew about this app, psychology app. using data from people who had thought they were engaging in some kind of personality quiz. then passing it on to a firm who had different motives and not discloses that at all. >> trace: 270,000 people are the ones that signed up for this app. 270,000. you had their user, their

friends list and their friends friends list and next thing you have 50 million. so they knew about this in 2015. then they kind of suppressed the information coming out that would shine some light on this. correct? >> right. i mean, they -- friday night i think around 6:00 pacific time, we got this blog post that they had suspended cambridge analytica and other party from the account. this was -- the next morning two newspapers, indepth reports came out that showed that clearly facebook had known about it. and some of the reporters at facebook had tried to stop them from publishing. so it seemed like this was damage control rather than just coming up front about it. and they had known about this. i mean, now they're making -- taking steps to make sure -- i think what gets to the heart of it for anybody on facebook,

especially on facebook a couple years ago when facebook's own policies were different, is that, you know, even if you never downloaded one of these apps, somebody in your friend's contact list -- we know we friended like our high school friends, right? they might have done that. the app developers had access to your information. we don't really know what they did with it. there were some pollties and the policies became tighter a couple years lawyer. what happened the things happening in 2013 when a lot of us were on them and we just don't really know what happened to our data? many people would like to -- >> trace: even 2012 in the obama campaign when they said look, facebook knew that the obama campaign was taking these people signing up for obama for america, these young people and doing the same thing. they had access to their friends lists. the next thing you know, they contacted these young people

that didn't have listed cell phone news. facebook knew about it. they knew it was possible to happen. >> some of the nuance was that. in many other situations, what facebook would say or what the obama campaign would say is that we were up front saying we're going to get this data for political purposes. now, that's a contrast with cambridge analytica that didn't say we're going to get the facebook data or the psychology researcher was presenting this as a personality app, not as we want to contact you for political purposes. so there's some slight of hand there that was different. for the average user, i'm not sure how many people realize that being on facebook and having friends meant that what your friends did and what they downloaded, even if they said, okay, yeah, i'm okay with being contacted by a political campaign, whether republican or democrat, doesn't mean that me

as their contact and i might not have very close contact, i'm okay with that. my mother has a very different sense of privacy than i do. i think that goes with many friends. so she doesn't want anybody knowing all of her stuff. that was always sort of a fear with facebook. it's resurfacing, i think, for users. >> i think it's a very good point. laura mandaro, thank you so much for joining us. >> thank you. >> trace: meantime, breaking news out of atlanta. reportedly dealing with a possible cyber attack as we speak. it's affecting the systems apparently citywide. the city is experiencing outages on various customer facing applications, including some that customers use to pay bills or access court-related information. officials say they're working with microsoft to fix the problem that atlanta.gov is still up and running and they

will post any updates as they receive them, a spokesman for the fbi field office in atlanta says we're aware of the situation and working with the city of atlanta to determine what happened. we will keep you updated as the information comes in to fox news channel. police in austin say they found a video the bombing suspect recorded hours before he blew himself up. what they say they learned from that video and why they're calling it's a confession coming up. and back to the bad news. it's down 623 points. yeah, there's china, there's the president's -- one of his attorneys resigned today, technology stocks. 625 and the market is still open for 18 minutes. we're coming back in three of those minutes. ance run and you have the determination to keep going. humira has a proven track record of being prescribed

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>> trace: police say the bomber that killed two in austin, texas

left behind what amounts to a confession before blowing himself up. the police chief says hours before the suspect died, he reported a 25-minute cell phone video describing the bombs he made. the police chief described 23-year-old matthew conditt as a very challenged young man with a lot of personal problems. the chief says that in the video conditt describes seven explosive devices, including the one he used on himself and investigators have found all of them. jonathan hunt is outside austin in pfluegerville where the suspect lived. jonathan? >> trace, behind me is the home that mark anthony conditt shared with two roommates there, the small yellow house. atf agents are wrapping up what has been a very thorough investigation all day in the home. we have seen agents going in and out. many of them in their

head-to-toe white evidence collection suits. they have found as we understand it components of bomb-making components. they tell us that match those that used in the six bomb attacks. we're also told according to congressman mike mccall of texas that they found a list of potential future victims. listen here to the congressman. >> he had a target list of future targets, residences, addresses that we found. >> based on what? >> based on his data that we retrieved. we went to the homes and cleared them from any suspicious packages. >> what officials are trying to do, trace, work out if there's any connection at all between the victims of the bomb attacks and this list of potential future victims or were they simply a random collection of people that the bomber was

targeting. trace? >> trace: jonathan, have they sid if they plan to release the suspect's video? >> we have not got any word from police as yet as to whether they intend to release that video any time soon. obviously it would be fascinating for all of us to take a look at it. according to those that have seen it, among them, the austin police chief. it does not lay out any particular political motivations, but in it, mark conditt does talk about the events in his life that brought him to the point that he felt he had to carry out these attacks. listen here. >> he does not mention anything about terrorism, nor does he mention anything about hate. instead, it is the outcry of a very challenged young man talking about challenges in his personal life that led him to this point. >> a challenged young man who

brought terror to an entire city for three long weeks. trace? >> trace: jonathan hunt, live for us outside of austin. thank you. i want to keep your attention on the corner of wall and broad. the dow is down 719 points. it was 730 and rallied a little bit. now down 721. i don't want to do the bad math for you. here's the deal. if you have $100,000 in a 401(k), you just lost $3,000. you don't really lose it unless you cash it in but messes with your mind. the chinese tariffs are part of this. the president imposing more tariffs on china. the concern of a trade war has a lot of people concerned about the economic future. as deidra bolton pointed out, one thing that wall street does not like is uncertainty. deidra bolton is back now. it seems at the end of the day,

it's like hey, let's go crazy here. down 380, 410 and then 700. >> yeah. you and i discussed this. we've been cited saying the same phrase. like this is the new formal as more and more computer algorithms are taking over. people decide which levels they want to sell. more and more computer trading is guiding this volatilitvolati. your point is well-taken. gone are the days of 50-point swings. we're skating below this level. there's 24,000, a key like logical level. the dow down more than 700 points. so in my humble opinion. the thing that is guiding us the most today are the trade tariffs. the government doesn't pay these. u.s. citizens, consumers pay

these. for a lot of businesses running, most notably, caterpillar, john deere, if china decides to retaliate and, say, for example start putting tariffs on our live hogs, on our experts, whether it's soy or sore gam. chin has only hinted in this. they have not put out ary cipro call mission sure. we have tariffs, which is a wet blanket. we have rates going higher. jerome powell saying the rates will go higher this years and next year. a lot of instability as we have discussed in washington d.c. that adds another layer. as a reminder, we've been up year on year for the past nine years. so people, investors, have had a

chance to take profits. tech really the poster child, the wonder child of the markets. we've seen facebook deal with intein t intech -- integrity issues. >> trace: we're here in california. all day long you have the agricultural, the farms and stuff. they're freaking out saying this is dearly going to hurt us. then you go back and you think, there's clearly some financial factors working into this. i'm wondering when you throw in the fact that john dowd, the president, one of his top attorneys on this whole russian meddling probe decides to step down, does politics play a role or -- >> it does. one for one. i was watching charts of the markets. when that news crossed, you saw the dow and i had all three up,

all three levels, they dropped further. it adds another element of instability. also let's not forget we're talking about a spending bill. there's a lot of people, economists worried about the longer term implications on how much we're giving in tax cuts, whether it's going to people or corporation. that paired with instability and paired with where we are in an economic life cycle at the end of a nine-year bull market run, there's some concern that we're going to see more days like this where you see on your screen. as we discussed with computer trading, they're always more dramatic now. this is a fact of life gathering and gathering. we're at this point. we're always going to see big swings on days like this. it's the second day in a row. closing lower. we had the two brutal week period back in february. i would not be surprised if we're setting ourselves up for a few days of that, trace.

>> trace: just for context, it's down 1.9% for the year. we're going to keep talking. if we talk, it rally as little bit. stand by. i want to bring in aaron back. he's from the "wall street journal." 700 points. there it goes again. let's bring back deidra. i'm kidding. i want to know your opinion on this. is it the tariffs, the technology? what do you make of this? >> markets hate uncertainty. they're worried about how china will react to the tariffs. markets are not sure about the new fed chairman. his first action was a rate hike. how many more will there be. investors are getting jittery. there's a significant chance that china could take action against boeing, caterpillar. you see that in their share prices today. >> trace: yeah. you see it now. 23,983. that is a psychological point

there. you look at the high for the year. it was at 26,669. now it look like we were at 26,000, now in the 23,000 range. there's a lot of psychological factors working into this. we have about four minutes left in the trading day. >> yeah. certainly market psychology is rattled right now. you know, you brought up what is happening with the president's legal time that is adding to uncertainty. people just don't quite know what to expect out of washington right now that is certainly not helping the market. that's one reason why it's heading lower. >> down 727. i'm going to give the last word to deidra. she's the rally cap. she will bring us back. >> if it were only true. the s&p 500 worth pointing out has erased all of its gains for the year. we're on this edge of going back

into correction territory, which would mean that we're off 10% from the markets most recent highs. we're not quite there yet, this is about trade. the president saying, this is the first of a tariff bill. he implied there's more to come. investors are not sure how to position it and what yet the chinese response is. that's what i'm watching most, trace. >> trace: i hear it all the time. wall street does not like uncertainty and today is the pinnacle of uncertainty. good of you to join us. thanks so much. neil will be at the top of the hour. he will make a lot of sense of this. if you can look at your screen, the dow is down 723 pints. down close to 2% for the year now. 3% for the day. it is a bunch of money regardless of how you look at it. chinese tariffs, technology stocks, raising rates. it all figures into there.

the bottom line is for your 401(k), it does not look pretty. if news breaks out, we'll break in. i'm trace gallagher in for shepard smith. "your world" with neil cavuto starts three minutes. nus check every six months i'm accident free. and i don't share it with mom! right, mom? righttt. safe driving bonus checks. only from allstate. switching to allstate is worth it.

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it's for the house. i got a job. it's okay. dad took care of us. >> neil: yikes! the dow, the lawyer, the trade war. fox on top of more than stocks going down. boy, oh, boy, did they go down. the dow careening more than 723 points on a trifecta and troubles that all came together today. first up, the president's lead attorney out. john dowd quitting. the same john dowd that was strongly advising that president not sit down with bob mueller. second up, tariffs. try more than $50 billion worth of them. china the target. let's say today china not happy. and third up, a $1.3 trillion spending plan that passes in the house but is anyone's guess in