Stocks opened with steep losses Wednesday morning amid an escalation of trade tensions between the U.S. and China.
The Dow Jones Industrial Average opened close to 500 points lower Wednesday morning, a roughly 2 percent drop. The Standard and Poor’s 500 index and Nasdaq took opened 1.4 percent percent lower, respectively, while industrial and materials sector stocks took the heaviest losses.
The selloff came after the U.S. announced a proposal for $50 billion in tariffs on Chinese goods Tuesday night. China responded Wednesday morning with their own $50 billion in levies on U.S imports, stoking investor worries.
Dow futures fell close to 500 points before Wednesday’s open, implying a major loss once trading began at 9:30 a.m. S&P futures fell 1.3 percent afterhours, while Nasdaq futures dropped 1.6 percent.
It’s the latest market dive seemingly triggered by President Trump’s tariffs and the retaliation they’ve drawn from U.S trade partners. Stocks also took heavy losses on Monday, when China announced tariffs on 128 U.S. goods in response to Trump’s steel and aluminum tariffs. That helped send the Dow 459 points lower on Monday.
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JUST IN: Stock market opens with severe losses as US-China tariff war takes off https://t.co/pwXLdC3tBk pic.twitter.com/qxQyFQQcze
— The Hill (@thehill) April 4, 2018
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