The Dow Jones Industrial Average closed down 472 points on Tuesday, while the S&P 500 fell 1.6% and the Nasdaq dropped 1.9%. The tech and industrial sectors saw the biggest losses.
The big picture: The drop comes two days after President Trump threatened to escalate the trade war and one day after the administration confirmed higher tariffs on Chinese imports would take effect later this week. The S&P 500 is 2% below the all-time closing high seen last week. It's 1.8% higher than where it was when the trade war began in early 2018.