The Dow Jones Industrial Average fell more than 300 points Monday after reports President Donald Trump plans to impose restrictions on Chinese tech investments.
The Dow was down 328 points or 1.33 percent to 24,252 at the end of trading Monday, after The Wall Street Journal on Sunday reported the U.S. Treasury is devising new policy that would prevent firms where Chinese ownership is at least 25 percent from purchasing “industrially significant technology.”
The index rebounded slightly before closing when White House trade adviser Peter Navarro referred to the stock selloff as an overreaction after being down by up to 500 points.
“There’s no plans to impose investment restrictions on any countries that are interfering in any way with our country. This is not the plan,” Navarro said. “So this whole idea that somehow there’s gonna be investment restrictions to the world, please, discount that.”
Treasury Secretary Steven Mnuchin also referred to reports by The Wall Street Journal and Bloomberg about investment restrictions specific to China as “fake news” in a tweet Monday.