Stocks fell on Tuesday after a top U.S. trade official indicated that higher tariffs on Chinese goods are coming later this week.
The Dow Jones Industrial Average traded 450 points lower while the S&P 500 fell 1.7% as the tech sector lagged. The Nasdaq Composite dropped 1.9%.
Shares of trade bellwethers Caterpillar and Boeing fell 2.4% and 3.3%, respectively. Boeing also broke below its 200-day moving average for the first time since January. Chipmakers, meanwhile, led the tech sector lower. The VanEck Vectors Semiconductor ETF (SMH) declined by 2.3% as KLA-Tencor dropped 6.4%.
U.S. Trade Representative Robert Lighthizer told reporters that the U.S. will increase levies on Chinese imports on Friday.