Dow sinks 760 points as US-China trade war worsens
Stocks are plunging on Wall Street after China let its currency sink to the lowest level in more than a decade, escalating its trade war with the U.S.
- Economy
- Compiled from wire services
- Published Date: 10:51 | 05 August 2019
- Modified Date: 11:37 | 05 August 2019
All three major stock indexes fell Monday with the Dow Jones industrial average shedding more than 760 points after China devalued its currency to a more than 10-year-low.
The Dow shaved as much as 961 points, or nearly 3%, before recovering to close at 767 down. The S&P 500 lost 87 points and the Nasdaq Composite dropped 278 points.
The massive sell-off follows China's decision Monday to allow the Yuan to slide to below seven to the dollar in response to U.S. President Donald Trump's threat to impose an additional 10% tariffs on $300 billion in Chinese goods unless a trade deal is reached by September.
The new import duties will be on top of 25% tariffs the U.S. already imposed on $250 billion in Chinese goods.
Financial markets have plunged following Trump's announcement Thursday, but fell precipitously after China's announcement.
Trump accused accused Beijing on Monday of currency manipulation.
"China is intent on continuing to receive the hundreds of Billions of Dollars they have been taking from the U.S. with unfair trade practices and currency manipulation," he wrote on Twitter as markets declined. "So one-sided, it should have been stopped many years ago!"
The ongoing trade war between the world's top two economies has sent shockwaves through global markets as a trade deal remains highly elusive.