May 7 (UPI) — The stock market plummeted Tuesday amid renewed concerns over trade negotiations between the United States and China.
The Dow Jones Industrial Average fell 473.39 points, or 1.79 percent, at the end of trading Tuesday, while the S&P 500 dropped 1.65 percent and the Nasdaq Composite slid 1.96 percent.
The Dow was down by up to 600 points early in the day, but recovered before closing.
Major indexes opened with approximately 2 percent losses after President Donald Trump threatened to increase tariffs on $200 billion worth of Chinese goods from 10 percent to 25 percent but rebounded after news that a Chinese delegation, including Vice Premier Liu He, would follow through on plans to visit the White House this week.
Concerns over trade relations between the two countries were renewed later on Monday, when U.S. Trade Representative Robert Lighthizer confirmed that the United States would carry out its plans to increase the tariffs on Friday after Treasury Secretary Steven Mnuchin said Chinese negotiators reneged on their deal.
Tech companies, semiconductor companies and other businesses that manufacture products in China led the market decline on Tuesday, due to concern over the increased tariffs.
Shares of computer chip makers Nvidia and Intel fell 3.75 percent and 1.44 percent respectively, while U.S.-traded crude oil fell 1.8 percent to $61.08 a barrel.