Dow drops 500 points as U.S.-China trade tensions mount
The Dow Jones Industrial Average fell nearly 500 points as stocks opened lower on Tuesday, with the market reacting further to mounting trade tensions between the United States and China.
- Dow Jones slipped 500 points as stocks extended losses on Tuesday.
- Investor sentiment flipped negative as China responded to U.S. trade war moves.
- Bitcoin fell under $110,500 while gold
The Dow Jones Industrial Average slid roughly 500 points, or 1.78%, giving up more of Monday’s gains. The picture across Wall Street was similar.
The benchmark S&P 500 dropped 1.3%, while the tech-heavy Nasdaq Composite plunged 2% as pressure spread across stocks. Cryptocurrencies also fell.
Why are Dow, S&P 500, Nasdaq down today?
Stocks traded higher on Monday, beginning the week on a positive note after the “Black Friday rout” that sank markets. That decline took root as President Donald Trump ignited fresh jitters with comments on U.S.–China trade tensions.
But despite positive Wall Street bank earnings reports, the mood across stocks has soured again as Beijing hit back. Investors worried about an escalation in the U.S.–China trade war. Trump accused China of trying to hurt the global economy via export controls on rare earths and critical minerals.
Tariffs and trade uncertainty are the new jitters across risk assets.
JPMorgan chief executive officer Jamie Dimon commented on the market outlook as the bank reported higher revenue in the last quarter.
With net income of $14.4 billion, JPMorgan saw a 12% increase from what it recorded in the third quarter of 2024. This was also about $1 billion more than estimates by Wall Street analysts. Dimon told investors:
Sell-off pressure has bull market outperformers and AI-trade stocks slumping the most.
Nvidia, Tesla, and Oracle shares all fell between 3.6% and 4.8% as losses cascaded into crypto. Blue-chip crypto asset Bitcoin (BTC) was down 3.7% to under $110,500.
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