Skip to content
Subscriber Only

U.S. Stocks Plunge Most in 2019 on Trade Tension: Markets Wrap

  • Chinese currency tumbles to lowest level in more than a decade
  • Treasury 10-year yield falls to lowest since before election
Bloomberg business news
Markets Sink as China Ramps Up Trade War With U.S.
Updated on

Financial markets buckled after China escalated the trade war with the U.S., sending American stocks to the biggest drop this year and sparking a rally in global bonds. Gold surged with the yen.

More than $700 billion was wiped from the value of U.S. equities on Monday, with the S&P 500 Index plunging 3% and all but 11 companies in the gauge trading lower. Losses in the Dow Jones Industrial Average surpassed 700 points as Apple and IBM slid at least 4%. The Cboe Volatility Index surged about 40%. The 10-year Treasury yield dropped to the lowest since before President Donald Trump’s election. China’s yuan sank beyond 7 per dollar, a move that suggests the level is no longer a line in the sand for policy makers in Beijing.