Trump also said the U.S. would be starting trade negotiations with Japan, noting: “If we don’t make a deal with Japan, Japan knows it’s a big deal.”

The Japanese yen clawed back to recover some losses against the dollar; it was last down 0.1 percent at 110.85 per dollar.

Wall Street was also under pressure after strong wage data stoked fears of tighter monetary policy in the U.S. Average hourly earnings rose 2.9 percent for the month on an annualized basis, marking the largest jump since 2009. The U.S. economy added 201,000 jobs in August, more than the expected increase of 191,000.

Treasury yields jumped to their highs of the session following the jobs report release, while the dollar also rose. The Fed has already raised rates twice this year and is largely expected to hike two more times before year-end.

“This does give more support to the folks looking for December rate hike,” said JJ Kinahan, chief market strategist at TD Ameritrade. But “we continue to see strength where we need to see it,” and that’s good for the market.

Boston Fed President Eric Rosengren told CNBC earlier on Friday that gradual rate hikes are appropriate should the economy continue to do well. “If things work out well for the economy, and that’s what I expect and hope, then we’ll be in a situation where we need to have somewhat restrictive policy over time,” he said.

“The data is becoming even more important than ever now as the market tries to decide whether the Fed will raise a fourth time this year in December or take a pause,” said Chris Zaccarelli, chief investment officer at Independent Advisor Alliance. “I would continue to be cautious as we head into the fall and be wary of trade concerns and increased equity volatility.”

Trade tensions, coupled with a meltdown in emerging markets, have pressured equities this week, knocking the S&P 500 and Nasdaq from record highs. In fact, the Nasdaq was on track for its worst four-day start to September since 2008.

Tesla shares fell as much as 9 percent after Dave Morton, the company’s chief accounting officer, resigned from his post. Morton said in a statement he left because of “the level of public attention placed on the company.”

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