Tariff threats send stocks down

U.S. stocks tumbled the most in a month as investors grappled with the latest American threats to expand tariffs on Chinese goods. The dollar slipped and emerging-market currencies declined.

The S&P 500 Index retreated Monday after five straight days of gains, with technology companies including Amazon.com Inc., Apple Inc. and Microsoft Corp. leading decliners. Semiconductor stocks also slumped, and the Nasdaq 100 Index saw its biggest drop since June. Investors sought refuge in consumerstaple and energy stocks such as Procter & Gamble Co. and Exxon Mobil Corp.

Shares in Hong Kong and China declined on news that President Donald Trump had instructed aides to proceed with tariffs on $200 billion in Chinese products. Beijing has already said it will retaliate, according to people familiar with the decision. Trump said he would make an announcement on China trade after U.S. financial markets close.

“The vector for traderelated global equity weakness today is tech, rather than China and emerging markets,” said Naufal Sanaullah, chief macro strategist at EIA All Weather Partners. “If the recent weakness in U.S. tech represents sufficient digestion of 10 percent tariffs on another $200 billion in Chinese imports, then any announcement could mark a short-term bottom in tech and it becomes all about the U.S. dollar again.”

The Stoxx Europe 600 Index closed higher, with fashion store Hennes & Mauritz AB beating forecasts to help retailers outperform. Italian bonds rallied while other core European debt turned lower. Benchmark U.S. Treasury yields hovered just under 3 percent.

Elsewhere, oil wavered as international supply concerns were overshadowed by a looming demand drop. Emerging-market stocks weakened and their currencies were led lower by a slide in India’s rupee, South Korea’s won and Turkey’s lira. Base metals including copper as the looming trade conflict spurred concerns about demand.

At the same time, Antitrust enforcers signed off on Cigna Corp.’s $54 billion takeover of pharmacybenefit managerExpress Scripts Holding Co., clearing one of two health-care deals that stand to reshape the industry.

Approval by the Justice Department smooths the way for the deal to wrap up by the end of the year, the companies said Monday in a joint statement. While some state regulators have yet to sign off, the U.S. review was one of the last major steps for the agreement the companies struck in March.