Stocks fell on Tuesday after President Donald Trump's latest threat to China increased fears of an impending trade war between the world's largest economies.
The Dow Jones industrial average fell 287.26 points to close at 24,700.21, with Boeing, DowDuPont and Caterpillar as the worst-performing stocks in the index. The 30-stock index also erased all of its gains for the year and posted a six-day losing streak, its longest since March 2017.
The S&P 500 dropped 0.4 percent to 2,762.45, with materials, industrials and tech lagging. The Nasdaq composite closed 0.3 percent lower at 7,725.59. Both indexes briefly fell more than 1 percent earlier in the session.
"At some point you've got to wonder how many times stocks are going to react to the same general bit of news. It may all just be a game of one-up-manship as a negotiating tactic to get to some sort of deal," said Willie Delwiche, investment strategist at Baird. However, "with investor optimism as high as it is, there might not be much margin for error, and there is a real risk that this starts to erode consumer and business confidence."
Shares of some of the biggest chipmakers fell given their large exposure to China. Qualcomm and Nvidia both dropped at 0.9 percent. Semiconductor and semiconductor equipment companies have a revenue exposure of 52 percentto China, according to a recent report from Morgan Stanley.