Stocks dropped for the sixth straight session on Monday, putting Wall Street on pace for its worst day of the year as China’s decision to let its currency sink against the dollar risked opening a new front in a trade war that is weighing on the world’s economy.
The move was the latest escalation in the trade dispute between Washington and Beijing. Last week, President Trump pledged to impose tariffs on another $300 billion of imports from China, dashing hopes that a truce between the countries might be in reach.
“That has just totally disintegrated,” said Ryan Detrick, senior market strategist at LPL Financial. “Now China is just clearly firing back and that has people uncomfortable.”