The Dow Jones dropped nearly 800 points on Tuesday, nearly a three percent plunge. The S&P 500 declined 2.5%, while the Nasdaq tumbled 3%.
Big tech stocks fell sharply. Apple ( AAPL ), Amazon ( AMZN ) and Alphabet ( GOOGL ) lost more than 3% apiece. With investors quickly realizing that the US-China trade war is not over, the tariffs already put in place remain -and new tariffs could be implemented if the two sides fail to make progress.
Dan Suzuki, portfolio strategist at Richard Bernstein Advisors, said “”people are still very concerned about the trade war; financial markets are increasingly showing signs of fear of a recession.”
President Donald Trump fueled Wall Street’s worries when he said that he would “happily” sign a fair deal with China but also left open the possibility that the talks will fail.