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Escalating U.S.-China trade war sends stocks plunging

New York • U.S. stocks moved sharply lower Monday on Wall Street and extended the market’s slide into a second week as investors seek shelter from an escalating trade war between the U.S. and China.

The Dow Jones Industrial Average and S&P 500 index each fell more than 2% as investors sold trade-sensitive shares. Chipmakers led the big declines in technology while heavy equipment makers Deere and Caterpillar drove losses in the industrial sector.

The world's largest economies had seemed on track to resolve the ongoing trade dispute that has raised prices for consumers and pinched corporate profit margins.