(Bloomberg) — U.S. stocks sank, with contracts on the Dow Jones Industrial Average sliding as much as 460 points, after China retaliated with higher tariffs on a range of American goods. Treasuries jumped with the yen on demand for haven assets.

The S&P 500 headed for the biggest decline since March after China targeted some of the nation’s biggest exporters. Boeing Co. and Caterpillar Inc. each fell more than 3%, while Intel Corp. and Nvidia Corp. lost at least 1.8%. Soybeans plunged 2% and cotton prices sank more than 3%. The dollar erased gains and 10-year Treasury yields fell to the lowest level since late March. The yen also rose. Oil climbed as Saudi Arabia said two of its tankers were “sabotaged.”

Risk assets had been under pressure all morning after President Donald Trump warned China not to retaliate after the latest round of American measures. The selling picked up when China said it will raise tariffs starting June 1. An unverified Twitter post purportedly by China’s Global Times suggested the possibility of selling some of Treasuries holdings. The escalation comes after talks ended last week in a stalemate, with no timeline for future discussions.

The Stoxx Europe 600 index was dragged into the red as almost every industry sector retreated, extending declines as the European Union said it was finalizing a list of U.S. goods to target in the event Trump imposes levies on car imports.

Investors are struggling to find positive catalysts for risk assets after the U.S. stepped up punitive tariffs on $200 billion in annual imports from China, and Trump started his Monday morning threatening that the trade standoff will “get worse” if there’s retaliation. While both economic superpowers have also worked hard since talks ended Friday to project calm and emphasize that they plan to continue negotiations, markets seem to sense fundamental divisions between the two sides.

On Monday, American officials are expected to announce details of their plans to boost tariffs on all remaining imports from China — some $300 billion in trade. Chinese state media blamed the U.S. for a lack of progress in trade talks while emphasizing the Asian nation’s economic resilience.

Elsewhere, Bitcoin climbed above $7,000 as the recent gains in cryptocurrencies extended over the weekend. Most base metals retreated as traders reassessed the demand outlook given the threats to global economic growth.

Here are some notable events coming up this week:

Earnings this week include Vodafone, Alibaba, Tencent, Cisco, Nvidia. A slew of Federal Reserve policy makers speak: Boston Fed President Eric Rosengren and Fed Vice Chairman Richard Clarida speak at a “Fed Listens” event hosted by the Boston Fed. New York Fed President John Williams speaks at an event in Zurich. Kansas City Fed President Esther George and Richmond Fed President Thomas Barkin also make appearances. Japan balance of payments is due Tuesday. China industrial production and retail sales are slated for Wednesday, same day as U.S. retail sales and industrial production. Bank of Indonesia has an interest rate decision on Thursday. Australian unemployment is out on Thursday.And here are the main market moves:

Stocks

The S&P 500 Index decreased 1.8% as of 9:34 a.m. New York time. The Stoxx Europe 600 Index fell 1.1% to the lowest in two months. The U.K.’s FTSE 100 Index dipped 0.5% to the lowest in nearly two months. The MSCI Asia Pacific Index declined 0.6%. The MSCI Emerging Market Index decreased 1.2%, the lowest since Jan. 25.

Currencies

The Bloomberg Dollar Spot Index pared gains to trade little changed. The euro increased 0.2% to $1.1258. The British pound advanced 0.3% to $1.3036. The Japanese yen jumped 0.8%, the most since March 22, to 109.11 per dollar.

Bonds

The yield on 10-year Treasuries fell five basis points to 2.42%, the lowest since March 29. Germany’s 10-year yield dipped one basis point to -0.06%. Britain’s 10-year yield declined two basis points to 1.12%.

Commodities

West Texas Intermediate crude increased 2.4% to $63.13 a barrel. Gold increased 0.9% to $1,298.90 an ounce.

Contact us at editors@time.com.

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