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Stocks got clobbered Monday (Aug. 5) in the biggest rout of the year for the three major indexes as trade tensions between the U.S. and China intensified.

USA Today reported that investors frantically dumped shares after China’s currency, the yuan, weakened sharply against the U.S. dollar, a move seen as a possible retaliation against President Donald Trump’s call last week for more tariffs on Chinese goods.

The Dow Jones Industrial Average dropped 767 points, or 2.9%, to close at around 25,718, while the Standard & Poor’s 500 index tumbled 87 points, or nearly 3%, to end at 2,845.

China allowed the yuan to drop to seven per U.S. dollar, an 11-year low and a politically sensitive level. A weaker Chinese currency can help boost that country’s exports by making them cheaper while hurting foreign competition.

The 1.4% decline in the yuan comes after Trump last week rattled markets when he promised to impose 10% tariffs on the remaining $300 billion of Chinese imports from Sept. 1.

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