American small and medium-size companies that rely on China are scrambling to adjust their business plans in response to the escalating trade war.Traderead more
Here are the products that stand to be the most affected by China's new tariffs on $75 billion worth of U.S. goods.Marketsread more
Trump said he will raise tariffs on $250 billion in Chinese goods to 30% and hike duties on another $300 billion in products to 15%.Politicsread more
China said on Saturday it strongly opposes Washington's decision to levy additional tariffs on $550 billion worth of Chinese goods and warned the United States of consequences...Politicsread more
The European Union will respond in kind if the U.S. imposes tariffs on France over digital tax plan, EU chief Donald Tusk told G-7.Technologyread more
Stocks dropped after Donald Trump ordered that U.S. manufacturers find alternatives to their operations in China.US Marketsread more
The final week of August could be highly volatile as markets fret over the economy and the latest developments in trade wars.Market Insiderread more
Federal Reserve Vice Chair Richard Clarida said Friday that the global economy has deteriorated in the past month.Marketsread more
The latest escalation in the trade war ups the odds the economy will fall into recession and that the Fed will aggressively cut rates.Market Insiderread more
"We don't need China and, frankly, would be far better off without them," Trump tweeted.Politicsread more
Recent trade friction between the two Asian powerhouses has morphed into a dispute with political implications that go far beyond the region.Asia Politicsread more
Stocks fell as a steep decline in technology shares that started last week carried through to Monday.
The tech-heavy Nasdaq Composite dropped 1.4 percent to 7,630. Shares of Facebook and Netflix fell 2.2 percent and 5.7 percent, respectively. Amazon declined 2.1 percent while Google-parent Alphabet fell 1.8 percent. The Nasdaq also notched a three-day drop of 3.86 percent, its biggest since late March, when it lost 5.12 percent over three sessions.
The declined 0.6 percent to 2,802.60 as the tech sector dropped 1.8 percent. The Dow Jones Industrial Average fell 144.23 points to close at 25,306.83 as Visa and American Express lagged.
Tech shares dove last week after Facebook dropped 19 percent Thursday on reporting weaker-than-expected revenue and lowering its revenue growth forecast. Facebook's massive drop sent the tech sector down 1.15 percent last week.
"The guys at the top don't stay there forever," said Kim Forrest, senior equity analyst at Fort Pitt Capital. "I don't see anyone displacing them right now, but they do have to make changes to their business models. For example, Facebook has to spend more money to make sure people aren't abusing the platform. Investors like more money, not less."
Twitter shares dropped 8 percent and were the biggest decliners in the S&P 500 tech sector. Take-Two Interactive, Electronic Arts and Akamai Technologies pulled back 7.7 percent, 5.7 percent and 5.5 percent, respectively.
Trade worries also rattled investors on Monday after Reuters reported that Canada, the European Union, Japan, Mexico and South Korea will meet next week to discuss a response to threats made by President Donald Trump about slapping tariffs on U.S. auto imports.
"I think the market is headed for jittery times," said Peter Cardillo, chief market economist at Spartan Capital Securities. "Those tariffs are showing up in earnings reports and eventually will hit the consumer. Once that happens, consumer sentiment will dampen."
Tyson Foods lowered its fiscal-year earnings forecast, citing uncertainty around trade policies and tariffs. Shares of Tyson Foods dropped more than 7.5 percent.
Meanwhile, Caterpillar said in its second-quarter earnings report that recently imposed tariffs will shave off between $100 million and $200 million from its bottom line in the second half. The company also reported better-than-expected earnings and raised its full-year outlook, however.
Wall Street looked ahead to the Federal Reserve's latest monetary policy meeting, which is scheduled to start Tuesday. Market expectations for a rate hike are just 3 percent, according to the CME Group's FedWatch tool, but investors will look for clues on the central bank's path toward normalizing policy.
"The Fed has said it expects to raise rates twice more this year," said Ed Keon, chief investment strategist at QMA. "If you look at the probability markets, most people in the market expect at least one more rate hike. It is the second one investors seem to be split on."
"Anything that provides some clarity on that would be helpful," Keon said.
Treasury yields rose ahead of the meeting on Monday, with the 10-year yield hitting 2.99 percent, its highest level since June 13.
American Express shares fell 2.9 percent after The Wall Street Journal that the company lured small business customers with low foreign exchange conversion rates only to raise rates later without notifying them.
Visa fell 3 percent after Kroger said its California subsidiary will stop accepting Visa credit cards, citing high payment fees and rates.