The Dow Jones closed nearly 800 points down on Monday following China's decision to devalue the yuan, marking just the latest escalation of ongoing trade tensions between Beijing and Washington. At its lowest today, the Dow had plummeted 950 points.
Earlier in the day, Chinese financial regulators allowed the value of the Chinese yuan to decline to more than seven for every U.S. dollar, a threshold the currency last passed during the 2008 financial crisis.
Inside mainland China, about 7.03 yuan were trading to the dollar, according to CNN Business. In the U.S., about 7.05 yuan were trading to the dollar at the end of the day.
Other U.S. indices did not fare well either.
The Nasdaq was down nearly 3.5 percent by the close of trading, while the Russell 3000 was down close to 3 percent.
China also reportedly told state owned-businesses to suspend orders for U.S. crops, marking another loss for U.S. farmers amid ongoing tariff disputes between the two countries.
On Twitter, President Donald Trump again accused China of being a currency manipulator, and wrote: "Are you listening Federal Reserve? This is a major violation which will greatly weaken China over time!"
Based on the historic currency manipulation by China, it is now even more obvious to everyone that Americans are not paying for the Tariffs – they are being paid for compliments of China, and the U.S. is taking in tens of Billions of Dollars! China has always....— Donald J. Trump (@realDonaldTrump) August 5, 2019
Beijing's move follows Trump's announcement last week that he wants to impose a 10 percent tariff on another $300 billion of Chinese goods, further straining already rocky trade relations between the two countries.