Stocks Fall as China’s Response to U.S. Tariffs Stokes Economic Anxiety

Investors are digesting the probability of the trade war between the United States and China continuing, taking a toll on businesses and consumers as the two countries ratchet up tariffs on each other’s exports.

The S&P 500 tumbled more than 2 percent on Monday, with trade-dependent companies hit the hardest after Beijing said it would retaliate against the Trump administration’s plan to raise tariffs on Chinese goods. After the losses it experienced last week, the benchmark index is now down more than 4 percent this month.

The drop is a turnabout for seasoned investors who had previously sloughed off concerns about the trade war’s impact on the global economy, corporate profits and American consumers.

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