New jitters over the possibility of an escalation in the costly trade war between the U.S. and China pulled stocks broadly lower.
The sell-off, which eased toward the end of the day Monday, came a day after President Donald Trump threatened to raise tariffs on goods from China.
Trump complained that the trade talks between the two countries are moving too slowly.
Companies with heavy business interests in China bore the brunt of the selling. Chipmaker Micron Technology lost 2.8%
Banks also fell. Health care rose.
The S&P 500 fell 13 points, or 0.4%, to 2,932.
The Dow Jones Industrial Average fell 66 points, or 0.3%, to 26,438. The Nasdaq fell 40 points, or 0.5%, to 8,123.
Bond prices rose. The yield on the 10 year Treasury fell to 2.50%.
U.S. Trade Representative Robert Lighthizer says the higher tariffs on China that President Trump threatened over the weekend will take effect at 12:01 a.m. Eastern time Friday.
Lighthizer adds that trade negotiations with the Chinese will resume on Thursday in Washington.
In a briefing with reporters, Lighthizer accused Beijing of "reneging on prior commitments" after 10 rounds of high-stakes negotiations over China's aggressive drive to supplant American technological dominance.
(Copyright 2019 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)
The United States has been losing, for many years, 600 to 800 Billion Dollars a year on Trade. With China we lose 500 Billion Dollars. Sorry, we’re not going to be doing that anymore!
— Donald J. Trump (@realDonaldTrump) May 6, 2019
For 10 months, China has been paying Tariffs to the USA of 25% on 50 Billion Dollars of High Tech, and 10% on 200 Billion Dollars of other goods. These payments are partially responsible for our great economic results. The 10% will go up to 25% on Friday. 325 Billions Dollars....
— Donald J. Trump (@realDonaldTrump) May 5, 2019
....of additional goods sent to us by China remain untaxed, but will be shortly, at a rate of 25%. The Tariffs paid to the USA have had little impact on product cost, mostly borne by China. The Trade Deal with China continues, but too slowly, as they attempt to renegotiate. No!
— Donald J. Trump (@realDonaldTrump) May 5, 2019
