New York: US stock futures nosedived on Tuesday after President Donald Trump said last week he was pushing ahead with tariffs on $50 billion of Chinese imports, prompting a quick response from Beijing, which said it would put duties on several American commodities.
Dow Jones Industrial Average futures slid 370 points to 24,650, while S&P 500 futures dropped 33.45 points to 2,746.25 and Nasdaq-100 futures lost 83.75 poins to 7,192.25.
Trump on Friday announced tariffs on $50 billion of Chinese imports, starting on July 6.
China said it would retaliate immediately by suspending previous trade agreements with Trump`s administration and slapping duties on American exports, including crude oil.
The Dow Jones Industrial Average fell 139.65 points, or 0.56 percent, to 24,950.83, the S&P 500 lost 9.2 points, or 0.33 percent, to 2,770.46 and the Nasdaq Composite dropped 9.93 points, or 0.13 percent, to 7,736.45.
The energy sector was the S&P 500`s most positive boost with a 1 percent increase as crude oil futures reversed earlier losses to settle higher.
US crude was last up 1.18 percent at $65.83 per barrel after earlier hitting a two-month low of $63.59 and Brent was last at $75.35, up 2.6 percent on the day after falling to a six-week low of $72.45.
Meanwhile Chinese stocks fell almost 4 percent and alarm bells rang across global markets on Tuesday, as the trade dispute between the United States and China escalated further.
The yuan also hit a five-month low overnight after U.S. President Donald Trump`s threat to impose a 10 percent tariff on another $200 billion of Chinese goods drew warnings from Beijing about $50 billion of retaliatory penalties on U.S. goods.
Asian stocks wilted to a four-month low and Australia`s dollar and South Africa`s rand were among a diverse group of currencies caught in the crossfire.
With Reuters Inputs