Dow Jones Industrial Average (DJIA) futures slumped more than 250 points on Monday.
President Trump launched an attack on China in a blistering Town Hall accusing the nation of covering up the severity of the coronavirus.
Chinese press hit back, slamming the U.S. ‘moral deficit’ and further raising tensions.
Trump and China traded fresh blows over the weekend as the president launched his most aggressive attack yet over China’s handling of the coronavirus outbreak. Dow Jones Industrial Average (DJIA) slumped lower on Monday in response.
President Trump riled tensions on Sunday night with a string of accusations against China. He accused the nation of trying to cover up the virus and suggested it may have been leaked from a Wuhan laboratory.
The Chinese press went into overdrive, accusing the United States of “propaganda warfare.” The Global Times, China’s English speaking newspaper closely associated with the Chinese Communist Party, wrote in a heated editorial:
The Trump administration continues to engage in unprecedented propaganda warfare while trying to impede global efforts in fighting the COVID-19 pandemic.
The coronavirus outbreak has heightened tensions between the two super-powers. And it could tip the US and China back into a trade war.
Dow futures point to a weak start to May
The month of May has started with a limp. After falling 2.5% on Friday, the stock market is extending losses on Monday. Dow futures point to 259 point (1.4%) slide.