Stocks dive as China considers skipping trade talks after Trump threat
A sharp sell-off will start the week on Wall Street after President Donald Trump said on Sunday that the U.S. will hike tariffs on goods imported from China, casting doubt on recent optimism that the world’s two largest economies were close to a resolution to their trade battle.
Dow Jones Industrial Average futures dropped 457 points as of 8:32 a.m. ET which implied an opening decline of about 440 points. S&P 500 futures lost 1.5% and Nasdaq-100 Index futures dropped 1.9%.
The sharp move down sent the Cboe Volatility index surging. The VIX, which is considered to be the best gauge of fear in the stock market, jumped to 17.24 from 12.87 and touched its highest level since Jan. 30.
China’s stock markets, meanwhile, fell sharply. The Shanghai Composite dropped 5.6% while the Shenzhen A Shares index plunged more than 7%.