Stocks fell on Thursday, resuming a selloff this week, after President Donald Trump said China "broke the deal" at a rally Wednesday evening, fueling worries the U.S. and China will be unable to hatch a trade agreement before new tariffs go into effect at midnight.
The Dow Jones Industrials plummeted 325.11 points, or 1.3%, to 25,642.22.
The S&P 500 docked 36.69 points, or 1.3%, to 2,842.73.
The Dow is down more than 700 points and the S&P 500 has lost more than 3% this week after Trump threatened to raise tariffs on more Chinese goods over the weekend.
The NASDAQ Composite index backed off 125.97 points, or 1.6%, to 7,817.35
Shares of Intel fell another 5% on Thursday after sinking nearly 5% in the previous session as the chipmaker said it sees both revenue and earnings per share growing in the "single digit" percentage range over the next three years. BMO downgraded the stock to market perform from outperform on Thursday, saying it sees the stock "treading water at best."
Chipmakers, sensitive to higher tariffs, took a hit on Thursday as Nvidia and Micron both dropped about 4%.
Chevron's stock rose more than 3% Thursday after the company said it will not submit a new offer to acquire Anadarko Petroleum and will collect a $1 billion breakup fee. The oil major also said it is increasing share repurchase rate by 25% to $5 billion per year.
Liu He, China's vice premier and top trade negotiator, will dine with U.S. Trade Representative Robert Lighthizer and other U.S. officials Thursday evening in Washington, just hours before the new tariffs are imposed. Liu is not expected to meet with Trump on Thursday
Prices for the benchmark 10-year U.S. Treasury were sharply higher, weighing yields to 2.43% from Wednesday's 2.49%. Treasury prices and yields move in opposite directions.
Oil prices slumped 78 cents to $61.34 U.S. a barrel.
Gold prices regained $4.90 to $1,286.30 U.S. an ounce.