Both major indexes fell over 1%.
Getty Images
Topline: The stock market was off to a rough start on Tuesday, and although it rebounded slightly in the afternoon, rising uncertainty over trade talks with China—set to start Thursday—took a huge toll and prompted a further sell-off.
- With fading optimism around U.S.-China trade negotiations, the S&P 500 dropped 1.56%, while the Dow Jones Industrial Average was down 1.19%.
- The CBOE Volatility Index spiked 9.5% following Tuesday’s reports that both sides were ramping up trade tensions.
- Every different sector of the market was in the red, with all but two out of 11 sectors falling by more than 1%.
Here are all the latest trade developments roiling the markets:
- Just days before trade talks were scheduled to resume, the Trump administration again escalated tensions on Monday, moving to blacklist eight more Chinese technology companies and reportedly discussing limits on pension investments in Chinese stocks.
- A Chinese Foreign Ministry spokesman on Tuesday said to “stay tuned” for China’s retaliation, followed by the Ministry of Commerce saying it “strongly urges” the U.S. to remove sanctions and stop accusing China of human rights violations.
- The South China Morning Post also reported that the Chinese delegation is toning down expectations and already planning to cut short it’s stay in Washington.
- Later on Tuesday, the Trump administration reportedly implemented new visa restrictions on a slew of Chinese officials over alleged abuses of Muslim minorities in Xinjiang.
What to watch for: The all-important trade talks on Thursday and Friday. If no progress is made, the U.S. will go ahead with its planned tariff hike on $250 billion worth of Chinese goods, from 25% to 30%, on October 15.
This article was originally published by Forbes.com. Read the original article here.