The US stock markets followed Asian markets lower after Trump tweeted that tariffs on $200 million of Chinese imports would be increased to 25% from 10% on Friday, and another $325 billion of additional goods would be taxed at 25%.
During intraday trading, the Dow Jones Industrial Average dropped 1.8% while the Standard & Poor's 500 fell 1.2% and the Nasdaq Composite slid 2.2% before rising on reports that China was still planning to send a trade delegation to Washington, DC for talks.
Health-care shares were the only Standard & Poor's sector to gain on the day, rising 0.4%. Blue chip UnitedHealthcare (UNH) rose 3.7%. Fellow health insurers Cigna (CI) gained 3.9% while Anthem (ANTM) rose 2.7%.
Energy shares edged lower as crude-oil prices jumped. West Texas Intermediate jumped more than 1.5% to $62.89 a barrel while international benchmark Brent rose nearly 1.3% to $71.76.
Anadarko Petroleum (APC) rose 3.8% after Occidental Petroleum (OXY) raised its cash offer for the independent driller. Occidental gained 1.4%. Chevron (CVX), which had initially struck a merger deal with Anadarko before Occidental made a higher bid, ended 1% higher.
Materials lost nearly 1.4%, led lower by DowDuPont's (DWDP) 3.6% decline. Eastman Chemicals (EMN) lost 2.9% and FMC Corp. (FMC) lost nearly 1.7%.
Deere & Co. (DE) dropped 4%, dragging industrial shares nearly 0.9% lower. Fastenal (FAST) lost 4.1% while Caterpillar (CAT) fell 1.7%.
In corporate news, Sysco (SYY) gained 3.5% after the foodservice company's earnings beat estimates. Tyson (TYN) rose 2.6% as the food company reiterated its full-year guidance as it posted better-than-expected quarterly results.
Meanwhile, Brunswick Corp. (BC) rose 1.3% as it agreed to sell its fitness business to KPS Capital Partners for $490 million in cash.
The DJIA lost more than 0.2%. The S&P 500 slipped more than 0.4% while the Nasdaq fell 0.5%.
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