S&P 500 and Dow Jones Industrial Average opened lower on Tuesday after a one-day bounce, as Wall Street turned jittery after China threatened retaliatory measures against the United States’ plan to impose 100% import tariffs.
Minutes into the trade, the Dow Jones Industrial Average fell 386 points or 0.84%, S&P 500 also fell over 0.97%, while Nasdaq was down 1.42%.
China, earlier on Tuesday, announced sanction on five of South Korea’s Hanwha Ocean’s US subsidiaries. This will forbid companies and individuals from doing business with affected organisations. The move, according to the Chinese government, will strengthen Beijing’s security.
This came four days after US President Donald Trump threatened to place additional 100% tariffs on Chinese imports. This sent shock waves through the markets, with Dow falling over 800 points and S&P 500 hitting its biggest one-day loss since April.
However, Trump soon softened his stance on Sunday when he said, “Don’t worry about China, it will all be fine.” Subsequently, the S&P 500 and Dow Jones jumped 1% each on Monday, while Nasdaq also ended in the green.
(This is a developing story)
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