Markets Dive as China Retaliation Reignites U.S. Trade Fears. Stock Futures Drop.

U.S. stocks were on course to drop Tuesday after China hit back at the U.S. with a fresh round of trade policies, reviving fears about ongoing tensions between the world’s two largest economies.

Futures tracking the Dow Jones Industrial Average fell 336 points, or 0.7%. S&P 500 futures dropped 1.2%, and contracts tied to the tech-heavy Nasdaq 100 dived 1.4%.

The three major indexes rallied on Monday, after President Donald Trump signaled that China and the U.S. ought to be able to resolve their trade dispute. But Beijing retaliated with a series of countermeasures on Tuesday, which now look set to weigh on sentiment.