landsberg bennettStocks extended losses Tuesday as investors continued to assess the latest trade updates. The S&P 500 dipped 1.7% to 2,884, its fourth decline in five trading sessions. The Dow shed 473 points to 25,965, while the Nasdaq Composite retreated nearly 2% to 7,963.

U.S. equities experience their worst day since January after U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin suggested Chinese leaders reneged on prior commitments. The U.S. officials also backed President Trump’s pledge to boost existing tariffs on $200 billion of Chinese goods from 10% to 25% as early as this Friday. The Chinese delegation still plans to visit Washington later this week to continue negotiations despite the threat of levies on another $325 billion of Chinese imports. Amid the uncertainty, the CBOE Volatility Index jumped to its highest level since January.

All 11 S&P 500 sectors ended in negative territory. The Technology sector led the losses as chipmakers sold off for the second straight session. Industrials, which have served as a proxy of the trade dispute, also lagged with Boeing tumbling 3.9% to $357.23. In earnings, insurer AIG offered a bright spot, jumping 6.8% to $50.30 after topping consensus estimates for the first time in six quarters.

Amid the perceived “risk-off” tone, Treasuries strengthening with the yield on the benchmark 10-year note down one basis points to 2.45%. In commodities, WTI crude fell 1.8% to $61.16/barrel.

Breadth was negative on issues by 7:1 on the NYSE and 3:1 on the Nasdaq. Composite NYSE Volume was more than 3.7 billion shares.