The Dow tumbled more than 900 points and global stocks were left in disarray after China escalated the trade war with the United States.
The Chinese government devalued the yuan to fall below its 7-1 ratio with the US dollar for the first time in a decade.
A weaker currency could soften the blow the United States has dealt China with its tariffs. The cheaper yuan ignited fear on Wall Street that the United States would respond with even higher tariffs, prolonging the standoff with China and potentially weakening the global economy.
With us now to explain is the Financial Times' markets editor Michael McKenzie.
