U.S. stocks went into freefall on Monday, with the Dow Jones Industrial Average down 900 points at its low before curbing some of those losses, ending the session 767 points lower.
|I:DJI||DOW JONES AVERAGES||31496.3||+572.16||+1.85%|
|I:COMP||NASDAQ COMPOSITE INDEX||12920.147675||+196.68||+1.55%|
All three of the major market averages lost about 3 percent led by the tech-heavy Nasdaq Composite in what is the worst session of the year for the broader markets.
The selling escalated overnight after China allowed its yuan to sink to an 11-year low, fueling concern Beijing might use its currency as a weapon in the tariff war.
Firing back, Trump slammed China for “currency manipulation” following the weakening of the yuan by the country.
Apple, Google and Amazon all taking a hit.
Investors also rotated out of trade-sensitive names including Boeing, Caterpillar and 3M.
|BA||THE BOEING CO.||223.22||-1.49||-0.66%|
All ten of the S&P's sectors lost ground with large-cap tech, consumer discretionary and healthcare stocks getting hit the hardest.
Last week, Trump told China the U.S. would be placing 10 percent tariffs on $300 billion worth of Chinese goods beginning Sept. 1.
Investors flocked to gold, a safe-haven, pushing the yellow metal above $1,460 level.
It will be another busy week for earnings. Dow member Disney will report Tuesday. In all, 59 companies in the S&P 500 will announce results.
On the economic agenda, the U.S. service sector expanded at the slowest pace in nearly three years in July, a sign that a key segment of the economy continues to cool. The Institute for Supply Management's nonmanufacturing purchasing managers index fell to 53.7 in July from 55.1 in June.
The Associated Press and FOX Business' Ken Martin contributed to this article.