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At 09:39 ET, the Dow Jones Industrial Average dropped from 135.69, or 0.54%, to 24,783.97 on the New York Stock Exchange.
The Standard & Poor's 500 Index dropped 13.50 points (0.48%) to 2,780.34, while the Nasdaq Composite Index, heavy in technology, lost 39, 12 points (0.50%) to 7,720.08.
The market is quite aware of the consequences of the worsening of the trade war with China, including the announcement of additional US tariffs.
US Trade Representative (USTR) The government said yesterday.
President Donald Trump said China would raise tariffs to $ 200 billion and then $ 300 billion in retaliation.
The commercial battles between the two countries, which had been lulled for some time after the US $ 34 billion tariff announced last week, have intensified again.
The Chinese side does not push back.
The Wall Street Journal reported that China, which was shocked by the US's application of additional tariffs, is considering retaliatory measures.
The newspaper quoted a Chinese official as saying that China was looking for ways to respond by other means, not just tariffs, because US imports are not important.
A spokesman for Chinese Foreign Minister Huachuning said: "The US action is a typical trade hegemony, and China will take the necessary countermeasures," he said.
In the Asian market, the Shanghai Composite Index fell 1.76% due to US and Chinese repercussions, and the hedging risk quickly spread to the global financial market.
The value of the Chinese yuan, which recovered slightly earlier in the week, also fell again, exacerbating market discomfort.
As President Trump traveled to Brussels to attend the NATO summit, the tensions of opposition with Europe are tense.
President Trump has already made a statement saying that he is a "Russian sensor" in Germany. Mr Trump also criticized the European Union's trade policy through Twitter throughout the day.
The weakness of large pharmaceutical stocks has also led to a fall in stock prices.
Pfizer, a global pharmaceutical company, withdrew its plan to raise the price after President Trump criticized drug price increases all day. As a result, shares of major pharmaceutical companies such as Pfizer, Biogen, Merck, etc. have weakened since the opening of the market.
In pre-opening trade, American Airlines shares declined 2.3% due to a downward revision of revenue forecasts. Caterpillar, sensitive to trade policy, fell 1.3% and Boeing 0.7%.
Economic indicators released today confirmed US inflationary pressures.
The Producer Price Index (PPI) in the United States jumped 0.3% in January. The WSJ survey was up 0.2 percent. The PPI jumped 3.4% in June, the highest level since November 2011.
After opening, the wholesale inventory is announced in May. John Williams, the governor of the Federal Reserve Bank of New York, is scheduled to speak.
New York stock exchange experts pointed out that the trade war has entered a new phase with the US's huge additional tariff plan, saying that there will be a big wave on the market.
David Carter, director of investment at Lennox Wells Management, said: "The tariff is more important than Chinese imports of US products, so China can not do direct confrontation," he said. Obviously, the other opposition means getting closer to a large-scale commercial war. "
He added: "In this case, the impact on the stock market will be more important than the economic fundamentals."
Stock prices of major European countries fell at the same time.
The pan-European index, the Stoxx 600 index, plunged 1.3%.
International oil prices also fell sharply. West Texas crude oil prices fell 1.17 percent to 73.24 dollars a barrel, while Brent crude fell 2.16 percent to 77.16 dollars.
According to the Chicago Mercantile Exchange (CME), the federal funds interest rate (FF) futures market reflects a 84.6% chance of a 25bp hike in September.
(New York News-Yonhap)
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