Stock markets in the U.S. slumped badly Monday, notching some of their worst single-day declines of 2019, during a global market correction spurred by increasing anxiety about U.S.-China trade relations.
President Donald Trump has vowed to implement more tariffs on China. The nations are several months into a clash over trade.
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Big tech was hit hard in the pullback. Netflix, Alphabet and Apple all shed between 4% and 5%, with social media firms Twitter, Facebook and Snap Inc. in slightly worse shape. As a hardware leader, Apple has been seen as one of the most vulnerable U.S. companies in the new China-U.S. environment.
Traditional media players fared a bit better but were still dinged, mostly falling by a couple of percentage points.
The yuan, China’s unit of currency, reached its lowest level in more than a decade. With the OK from the government, the People’s Bank of China allowed the yuan to fall. Trump blasted the move on Twitter as a “major violation” and “currency manipulation.”
As the yuan fell to less than seven per dollar, U.S. companies faced a bigger challenge operating in China as the net effect of the currency drop is that prices for U.S. goods increase.
Prior to the rough day on Wall Street, several stock markets across the world had also registered declines.