US stock selloff intensifies, DJIA drops more than 1.5%

Following a negative start to the day, major equity indexes in the U.S. extended their losses and slumped to their worst levels in nearly two months. As of writing, the Dow Jones Industrial Average was down 1.53% on the day while the S&P 500 and the Nasdaq Composite were dropping 1.12% and 1.1%, respectively.

Fears over China cutting its rare earth exports to the U.S. and the U.S. possibly responding with additional tariffs cause investors to flee to safer assets. Commenting on the U.S.-China trade conflict and the market reaction, "There is no trade deal, despite the daily back-and-forth there probably will not be a deal that’s going to be meaningful and the markets are kind of realizing that,” Dave Ellison, portfolio manager with Hennessy Funds in Boston, told Reuters.

Among the 11 major S&P 500 sectors, the Energy Index is losing 1.6% pressured by a 2.7% drop in the barrel of West Texas Intermediate. The Communication Services Index and the Technology Index, which consist of companies that rely heavily on chemical elements used in high-tech consumer electronics - rare earths, are both erasing more than 1%.