Stocks fell sharply on Wall Street on Monday, knocking nearly 400 points off the Dow Jones Industrial Average.
The benchmark S&P 500 had its worst day in a week as the sell-off put the market deeper into the red for August. The selling was widespread, with technology companies and banks accounting for a big share of the decline.
Investors sought safety in U.S. government bonds, sending their yields tumbling. The price for gold, another traditional safe-haven asset, closed higher.
The costly trade war between the U.S. and China has rattled markets this month. An escalation in tensions between the world’s largest economies has stoked worries that the long-running trade conflict will undercut an already slowing global economy.
“Trade and the concern that as this escalates it continues to wear on confidence to a point that this actually causes a recession, that’s what people are wrestling with,” said Ben Phillips, chief investment officer at EventShares.
The latest wave of anxious selling left the S&P 500 index down 35.56 points, or 1.2%, at 2,883.09. The Dow fell 389.73 points, or 1.5%, to 25,897.71. The average was briefly down 462 points.
The Nasdaq composite dropped 95.73, or 1.2%, to 7,863.41. The Russell 2000 index of smaller company stocks lost 18.58 points, or 1.2%, to 1,494.46.