The Dow plunged Monday after China said it will raise tariffs in retaliation to last week’s tariff increase by the United States.
China hiked tariffs on $60 billion of imports from the United States. It first imposed the tariffs last year.
Worries over the escalation of the trade spat with China just aren’t going away.
US stocks ended the day sharply lower. The Dow closed down 617 points after falling as much as 719 points earlier in the day. The S&P 500 fell 2.4% and the Nasdaq dropped 3.4%.
The Dow and S&P 500 had their worst day since January 3, according to Refinitiv. The Nasdaq had its worst day of 2019 and biggest one-day drop since December 4,2018.
Only a single Dow stock, Procter and Gamble, was positive (by a dime). In the S&P 500, only a few dozen companies had moved higher, and most of them were in the utilities sector, which tends to not react to big broad market moves.
The Russell 2000 Index of small-cap stocks fell into correction territory. It has dropped more than 10% from its August 2018 high.
