‘People Are Very Fearful': Investors React to Trade War Escalation
- Chinese currency falls to lowest level in more than 10 years
- S&P 500 extends drop to 5% from recent high, falls for 6th day
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After wrapping up its worst week of the year, the slide in stocks gained momentum as the trade war between the U.S. and China took on a new dimension.
Equity losses accelerated after China let the yuan tumble to its weakest level in more than a decade and asked state purchasers to halt imports of American agricultural products. The S&P 500 Index dropped as much as 2.4% on Monday, the most since May. Treasuries rallied, with the 10-year yield dropping to its lowest since October 2016, as investors rushed into perceived safer assets.