Global Stocks Tumble Due to US-China Trade War

Dow plunges 700 points amid escalating trade war between US, China

US stock indices dived more than 2 percent on Monday as investors' sentiment was hit by grave concerns over the prospects of economic expansion and corporate earnings in the coming quarters.

The Shanghai Composite index slipped 0.2% to 2,883.61 while Japan's Nikkei 225 gave up 0.6% to 21,067.23.

The S&P 500 rose 13 points, or 0.5%, to 2,825.

With most of the major sectors now in the green, the Dow Jones Industrial Average is up a bit over 1%, or almost 300 points, and the S&P 500 is up a similar percentage.

On Monday, some traders were concerned that China, the largest foreign USA creditor, could dump Treasuries to counter the Trump administration's hardening trade stance.

Tuesday's rally came after another round of morning Trump tweets on trade.

Tech stocks took a beating, especially those sensitive to the worsening U.S. "It feels like an attempted recovery that may not have legs". In the meantime, it appears both sides are far from a deal.

"That being said, we are going through something that we've never gone through before", Miller said. "But, we're looking for a path to progress". The benchmark index is coming off its worst week since January, though it's still up sharply for the year.

Trump started raising tariffs last July over complaints China steals or pressures foreign companies to hand over technology and unfairly subsidizes businesses Beijing is trying to build into global leaders in robotics and other fields. If that in turn drives spending lower, it would lead to lower economic growth and corporate profits.

Also Tuesday, China's tightly controlled social media were filled with comments lambasting Washington following weeks of little online discussion of the dispute.

Wall Street's rout Monday was followed by losses on most major Asian markets. A day earlier, it had spiked 28.1 %.

The Russell 2000 index of small company stocks lost 49.99 points, or 3.2%, to 1,523. -China trade battle because many of their customers and suppliers are overseas.

The S&P 500 is up 305.02 points, or 12.2%.

All three major United States indexes closed in the black on Tuesday although they pared gains late in the day and clawed back less than half of Monday's losses, which were the largest one-day percentage drops in months. China's yuan and the Australian dollar also regained some poise, with the former breaking a six-day losing streak.

Investors are losing faith that a U.S. Benchmark 10-year Treasury notes last yielded 2.4086% compared with a USA close of 2.405% on Monday. It was at 2.45% at the end of last week.

Shares of Tesla Inc fell 5.2 percent to their lowest in more than two years.

The S&P/TSX composite index closed up 91.12 points to 16,284.53 after hitting an intraday low of 16,206.22.

In Europe, London's FTSE 100, Germany's DAX and the Paris CAC 40 were up by between 0.5 and 1.1 per cent by about 6:15 a.m. ET. Asian markets were mixed.

Still, since Beijing's tariff increases only take effect on June 1 and those raised by Washington apply only to goods shipped after May 10, which will take a couple weeks or more to reach the USA, there is still time to find a compromise in the festering dispute over Chinese efforts to gain a lead in advanced technologies through means that the Trump administration says are unfair and violate world trade rules. Brent crude, the global standard, picked up 29 cents to $70.52 per barrel.

Boeing climbed 1.7% while Apple rose 1.6%.

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