Dow plunges 550 points as trade fears spook markets

Traders once again fled from the stock market early Wednesday, preferring s💞o-called safe-haven assets such as gold, as trade tensions between the US and China conti𒅌nue.

The Dow Jones Industrial Average plunged more than 550 points shortly after Wedne𒈔sday’s open, erasing gains from Tuesday that followed a six-day losing streak.

Both the S&P 500 and Nasdaq were caughཧt up in the early ca🍷rnage, falling 1.9% and 1.6$, respectively.

The selling kicked off in earnest last week after President Trump threatened to tax an additional $300 billion worth of Chinese imports. It worsened this week when China retal🧸iated by saying it would stop buying US crops and letting its currency drop to a level not seen in 11 years, which makes its imports cheaper.

On Tuesday, investors breathed a sign of relief after China indicated that it would not allow the yuan to fall much further. But they panicked again Wednesday after the yuan was priced at weaker-than-expecteꦬd levels Tuesday evening.

The tit-for-tat measures have sent 𒐪investors fleeing stocks and into safe havens like gold. The precious metal climbed above $1,500 an ounce early Wednesday — hitting levels last seen more than six years ago.

Gover🔯nment bonds also rallied Wednesday with the yield on the 10-year note falling 6.6% to 1.62% as central banks around the world lowered their interest rates to promote growth. Yields move in the opposite direction to price.

Trump blamed stock rout on the Federal Reserve and pointed in a tweet to interest rate 📖cuts by central banks in India, New Zealand and Thailand as a reason the Fed should do more.

“Our problem is not China,” he tweeted Wednesday. “Our problem is a Federal Reserve that is too proud to admit their ꧂mistake of acting too fast and tightening too much (and that I was right!).”

The Fed cut interest rates by a quarter-point last month but many hoped for a half-🐬point cut or for the Fed to indicate it planned to continue cuts. Trump said those cuts need to b༒e “bigger and faster.”

“We will WIN anyway, but it would be much easier if the Fed understood, which they don’t, that we are compeꦬting against other countries, all of whom want to do well at our expense!” Trump tweeted.