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Stocks fell sharply on Thursday as investors started to fear the U.S.-China trade war is slowing the economy.
The Dow Jones Industrials came off its lows of the day, but still fell 286.14 points, or 1%, to 25,490.47, as United Technologies lagged.
The Dow is now down more than 380 points in two days as Wall Street begins to realize the trade war may last a lot longer than previously expected.
The S&P 500 ditched 34.03 points, or 1.2%, to 2,822.24. The S&P 500 is down more than 4% so far in May along with the Dow.
The NASDAQ Composite dropped 122.56 points, or 1.6%, to 7,628.28
U.K.-based chip designer Arm Holdings said it suspended business with Huawei to comply with the U.S. blacklisting of the telecom company. Panasonic also said it stopped shipping some smartphone components to Huawei.
Vodafone and BT Group, the biggest phone carriers in the U.K., said they are removing Huawei phones from their 5G network plans.
Equities extended losses after IHS Markit said U.S. manufacturing activity grew at its slowest pace since September 2009 this month.
As yields fell on the weak economic data, bank shares including J.P. Morgan Chase and Bank of America were hit.
Shares of Qualcomm fell 1.5% while Xilinx declined 2.3%. Micron dropped 2.6%., and Lam Research declined 0.9%.
Apple shares also fell 1.7% after a UBS analyst cut his price target on the iPhone maker to $225 per share from $235.
Prices for the benchmark 10-year U.S. Treasury climbed, lowering yields to 2.31% from Thursday’s 2.39%. Treasury prices and yields move in opposite directions.
Oil prices docked $3.32 to $58.10 U.S. a barrel.
Gold prices leaped nine dollars to $1,283.20 U.S. an ounce.
