Stocks plunged on Wednesday after China announced new tariffs on 106 more U.S. products, increasing worries.
The Dow Jones industrial average tanked more than 350 points, with Boeing and Caterpillar leading all stocks in the index lower.
The S&P 500 dropped 1.2 percent, with energy and industrials as the worst-performing sectors. The Nasdaq composite declined 1.1 percent.
“I think the market is just concerned about this thing escalating right now,” James Paulsen, chief investment strategist at The Leuthold Group, told CNBC’s “Squawk Box.”
“It’s not so bad if we have a few tariffs on a few products, but if it escalates worldwide, … then you’re really threatening the recovery globally.”