Dow Plunges 600 Points as Investors Fear Trade War Escalating
WASHINGTON (Dispatches) - U.S. markets plunged Monday as China said it would raise steep tariffs on $60 billion in U.S. goods, raising the stakes of a trade war that threatens to imperil the global economy.
The Dow Jones industrial average is off more than 590 points, more than 2 percent, in morning trading as investors feared that a trade standoff with China could escalate into a full-blown economic crisis — dragging the U.S. and world economies into recession. Dragging the Dow were Apple, Caterpillar and Boeing.
The Standard & Poor’s 500 index was down 2.25 percent and the tech-heavy Nasdaq Composite fell nearly 3 percent, continuing last week’s losses. Eight out of 11 market sectors were in negative territory an hour after U.S. markets opened. Utilities, real estate and consumer discretionary were the only bright spots.
"Today’s tit-for-tat in U.S./China trade tariffs has exacerbated tumbling futures out of fear that tensions could trigger a global recession,” said Sam Stovall, chief investment strategist at CFRA Research.
The Dow Jones industrial average is off more than 590 points, more than 2 percent, in morning trading as investors feared that a trade standoff with China could escalate into a full-blown economic crisis — dragging the U.S. and world economies into recession. Dragging the Dow were Apple, Caterpillar and Boeing.
The Standard & Poor’s 500 index was down 2.25 percent and the tech-heavy Nasdaq Composite fell nearly 3 percent, continuing last week’s losses. Eight out of 11 market sectors were in negative territory an hour after U.S. markets opened. Utilities, real estate and consumer discretionary were the only bright spots.
"Today’s tit-for-tat in U.S./China trade tariffs has exacerbated tumbling futures out of fear that tensions could trigger a global recession,” said Sam Stovall, chief investment strategist at CFRA Research.