NEW YORK CITY (NBC) – A rough day on Wall Street as the DOW fell more than 900 points at one point Monday afternoon before recovering a bit, closing down more than 750 points. And experts say the escalating trade war is to blame.
Wall Street experienced it biggest one-day decline of the year today after the Chinese government retaliated against the new tariffs announced by President Trump last week.
The Chinese government allowed the value of its currency to fall to its lowest level against the dollar in 10 years. That situation affects the whole world.
The U.S. and China are the two biggest economies in the world. They trade with virtually every country and when China reduces the value of its currency, that adversely affects all of its trading partners, not just the U.S., and makes all goods sent to China more expensive.
So it’s no surprise Asia and Europe were down sharply earlier Monday and here in the U.S., the DOW Jones Industrial Average was down roughly 3% about 750 points.