Dow Drops More Than 700 Points As China Trade War Escalates

Stocks dropped on Monday after China escalated its trade battle with the U.S. by letting its currency sink to an 11-year low. The move prompted a rebuke from President Donald Trump, who in a post on Twitter accused the Chinese government of currency manipulation.

All three major stock indexes lost at least 2.5%. The Dow, which opened 400 points lower, lost 685 points, or 2.6%, by midday. It was trading falling to 25,798 as of 1:20 p.m. Eastern Time. The S&P 500 fell 2.5% to 2,857, while the Nasdaq fell 3% to 7,756.

The plummet is a response to the escalating trade war between the U.S. and China. After Mr. Trump last week announced surprise tariffs on $300 billion of Chinese imports, China responded by allowing the yuan’s exchange rate to sink below seven per dollar.

Dow drops 750 points, markets rattled after China lowers currency