NEW YORK — US stocks plunged at the opening on Monday with the Dow dropping more than 500 points, as investors were concerned about trade tensions between the United States and China.
At midday, the Dow Jones Industrial Average plunged 726.30 points, or 2.74 percent, to 25,758.71. The S&P 500 was down 80.39 points, or 2.74 percent, to 2,851.66. The Nasdaq Composite Index dropped 264.09 points, or 3.30 percent, to 7,739.98.
Trade bellwethers Caterpillar and Boeing dropped 2.05 percent and 2.73 percent, respectively. Semiconductor stocks like Micron Technology, Skyworks Solutions and Advanced Micro Devices fell 5.45 percent, 3.83 percent and 5.08 percent, respectively. Shares of Apple was down 4.97 percent, top decliner among the Dow component companies. All the Dow components were trading at red territory at midday.
All 11 primary S&P 500 sectors declined, with technology and communication services declining 3.67 percent and 3.03 percent, respectively.
The Cboe Volatility Index (VIX), widely considered to be the best fear gauge in the market, jumped 28.22 percent to 22.58.
US President Donald Trump tweeted Thursday that he would place an additional 10 percent tariff on the remaining $300 billion worth of Chinese imports starting on Sept. 1.
Several US industry associations have voiced their opposition to the White House’s plan to impose more tariffs, arguing that such action will not facilitate negotiation but only hurt Americans.
Analysts have said that since the new tariff would target retail items, along with other consumer goods, the impact on the US economy will be more direct.