NEW YORK (AP) — An escalating showdown between the U.S. and China over trade sent shudders through the stock market, with the Dow falling 473 points, or 1.8 percent, to 25,965.
The volatile fluctuation handed the S&P 500 is biggest loss since late March.
Technology and industrial stocks, which do a lot of business with China and would stand to suffer greatly in a protracted trade war, led the way lower on Tuesday.
Apple lost 2.7 percent and United Technologies fell 3.4 percent.
China’s top economic official travels to Washington this week ahead of a Friday deadline by which Washington said it would sharply raise tariffs on Chinese goods.
Safe-play sectors like utilities held up better than the rest of the market.
The S&P 500 fell 48 points, or 1.7 percent, to 2,884. The Nasdaq fell 159 points, or 2 percent, to 7,963.