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The Dow Jones Industrial Average (DJIA) struggled on Wednesday, declining a little over 500 points at its lowest point on the day. Investors are facing fresh risk-off sentiment as the Trump administration continues to toy with making already-tense trade friction between the US and China even worse. Another subprime lender declared bankruptcy, highlighting growing fissures in the credit and lending segment.

The Trump administration, according to sources, is weighing its options on imposing restrictions on the export of software to China, a move meant to lash out at China in response to its recent move to exert further government control over the export of rare earth minerals from within its borders. Key US industries, specifically the tech sector, are critically reliant on having open access to China rare metals markets.

Subprime lender PrimaLend filed for bankruptcy, adding additional pressure to investor sentiment regarding the health of US lending segments. This bankruptcy follows the collapse of an automotive lender in recent weeks.

US farmers lashed out at US President Donald Trump over his convoluted plan to import beef from Argentina in order to make up a shortfall after his administration imposed a 50% tariff on all Brazilian imports. American cattle farmers decried the move, drawing criticism from President Trump, who claimed that American beef farmers for “not understanding” how his tariffs have benefited them.

Dow Jones daily chart

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