Stocks are plunging midday, as Wall Street paces for a third-straight daily loss amid escalating global trade tensions. The Dow Jones Industrial Average (DJI) is down over 1,000 points, while the Nasdaq Composite (IXIC) has shed triple digits, and the S&P 500 Index (SPX) lingers near bear market territory. An earlier rebound faded quickly after the White House denied rumors of a tariff pause, calling reports of a 90-day delay “fake news.”

Fueling the selloff, President Trump threatened to impose new 50% tariffs on China if Beijing doesn’t drop its retaliatory duties. With negotiations stalling and recession fears growing, investors are currently bracing for a prolonged global trade war, reflected in the Cboe Volatility Index's (VIX) surge back above the critical 50 level.

Ally Financial Inc (NYSE:ALLY) is seeing elevated options activity, after BofA Global Research lowered the security's price target to $38 from $42, while maintaining a "buy" rating. Though the company's first-quarter earnings per share (EPS) are anticipated to come in slightly below estimates, recession concerns could have a greater near-term impact on price action. So far, over 13,000 calls have changed hands -- 13 times the average intraday volume -- with most activity at the April 36 call, where positions are being opened. Year over year, ALLY is down 19.1%.

Dollar Tree Inc (NASDAQ: DLTR) stock is outperforming today, last seen 5.5% higher at $71.24, after Citigroup upgraded the discount retailer to "buy" from "neutral." The analyst called DLTR a “dark horse winner" in the developing global trade war. The stock has rebounded sharply from Friday's lows and now sits just 4.4% lower year to date.

TAL Education Group (NYSE: TAL) is among the worst performers on the IXIC today, last seen down 12.1% to trade at $11.32, as Chinese ADRs slide on renewed tariff jitters. Traders are bracing for the economic fallout from the latest round of U.S.-China tensions, and TAL just slipped below breakeven on a year-over-year basis.

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