US Stocks Capsize, Worst in 2019

US Wall Street’s major indexes tumbled on Monday, with the benchmark S&P 500 dropping about 3%, as a fall in the yuan following U.S. President Donald Trump’s vow to impose additional tariffs on Chinese goods sparked fears of a further escalation of the U.S.-China trade war.

The Dow Jones Industrial Average .DJI fell 767.27 points, or 2.9%, to 25,717.74, the S&P 500 .SPX lost 87.31 points, or 2.98%, to 2,844.74.

The tech-heavy Nasdaq composite fell the most of the major indexes, losing 278 points, or 3.47%, to finish at 7,726, USA Today reported.

In value terms, the decline amounted to a $766 billion paper loss for the index, according to Refinitiv data. The S&P 500 has fallen for six consecutive sessions and is now about 6% below its record closing high on July 26.

China allowed the yuan to drop to seven per U.S. dollar, an 11-year low and a politically sensitive level. A weaker Chinese currency can help boost that country’s exports by making them cheaper while hurting foreign competition.

“Trade continues to trend in the wrong direction … any hopes of a quick resolution with China are fading quickly,” said Ryan Detrick, senior market strategist for LPL Financial.