Markets Right Now: Stocks swoon as trade war flares Stocks dropped 3% on Wall Street, their worst loss of the year, after China countered President Donald Trump's latest tariff threat by letting its currency weaken to the lowest level in more than 10 years.

NEW YORK -- The latest on developments in financial markets (all times local):

4 p.m.

Stocks dropped 3% on Wall Street, their worst loss of the year, after China countered President Donald Trump's latest tariff threat by letting its currency weaken to the lowest level in more than 10 years.

Investors fear that the escalating trade war between the two giant economic powers could do lasting damage to the world economy.

They responded Monday by dumping stocks and shoveling money into U.S. government bonds, which are considered ultra-safe. That sent bond yields sharply lower.

Technology companies, which would stand to suffer in a protracted trade war, took the biggest losses. Apple gave up 5.2%.

The Dow Jones Industrial Average sank 767 points, or 2.9%, to 25,717.

The S&P 500 fell 87 points, or 3%, to 2,844. The Nasdaq fell 278 points, or 3.5%, to 7,726.

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2:30 p.m.

Stocks are plunging on Wall Street after China let its currency sink to the lowest level in more than a decade, escalating its trade war with the U.S.

The Dow Jones Industrial Average sank 800 points Monday, or 3%, its worst drop of the year.

Technology companies and banks fell the most. Apple and Bank of America each fell 5%.

Bond prices soared, sending yields sharply lower, as investors sought safety.

China's central bank allowed the yuan to sink below seven per dollar. Investors are concerned that Beijing is using its currency as a weapon in its trade skirmish with Washington.

The Dow lost 850 points, or 3.2%, to 25,629.

The S&P 500 fell 93 points, or 3.2%, to 2,837. The Nasdaq fell 309 points, or 3.9%, to 7,694.

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11:45 a.m.

Stocks are falling sharply on Wall Street after China let its currency sink to the lowest level in more than a decade, escalating its trade battle with the U.S.

Technology and financial stocks posted the biggest drops Monday. Apple sank 4.5% and Bank of America dropped 4.7%.

China's central bank allowed the yuan's exchange rate to sink below the politically sensitive level of seven per dollar.

Investors are concerned that Beijing is using its currency in an escalating trade war with U.S. President Donald Trump.

The S&P 500 fell 68 points, or 2.3%, to 2,863.

The Dow Jones Industrial Average lost 601 points, or 2.3%, to 25,875. The Nasdaq fell 244 points, or 3.1%, to 7,759.

Bond prices rose sharply. The yield on the 10-year Treasury fell to 1.76%.

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9:35 a.m.

Stocks are falling sharply on Wall Street after China let its currency sink to the lowest level in more than a decade, escalating its trade battle with the U.S.

Industrial and financial stocks posted the biggest drops early Monday. Apple sank 2.8% and Bank of America dropped 3.5%.

China's central bank allowed the yuan's exchange rate to sink below the politically sensitive level of seven per dollar.

Investors are concerned that Beijing is using its currency in an escalating trade war with U.S. President Donald Trump.

The S&P 500 fell 51 points, or 1.8%, to 2,880.

The Dow Jones Industrial Average lost 459 points, or 1.7%, to 26,017. The Nasdaq fell 185 points, or 2.3%, to 7,819.

Bond prices rose sharply. The yield on the 10-year Treasury fell to 1.77%.