Stocks fell sharply this morning after China decided to raise tariffs on some U.S. goods as the ongoing trade war between the world’s largest economies intensifies.
The tech sector pushed the S&P 500 down by 2%. The Nasdaq dropped 2.6%.
China will hike tariffs on $60 billion worth of U.S. imports, starting on June 1, The goods targeted include a broad range of agricultural products. This comes after President Donald Trump raised tariffs on Chinese imports last week.
Asian markets fell broadly. The Nikkei 225 index declined 0.7% Monday while the Shanghai Composite pulled back 1.2%. European stocks also dropped. The Stoxx 600 index fell 1.1% while the German Dax dipped 1.5%.
Trade bellwether Caterpillar fell more than 3.5% while Apple dropped 4.4%. Boeing shares also declined more than 3% amid speculation the airplane maker could be singled out by China in the trade war.