(NEW YORK) — Stocks are opening sharply lower on Wall Street as an escalating trade dispute between the U.S. and China poses a threat to global economic growth and corporate profits.
The Dow Jones industrial average fell about 500 points at the open, with energy, industrial and materials sectors leading the decline.
The sell-off was triggered after China announced a list of U.S. products that might be subject to a 25 percent tariff in retaliation for U.S. tariffs on $50 billion of Chinese goods.
European and Asian markets also fell sharply.
Gold, considered a safe-haven investment, rose nearly 1 percent.