UPDATE | Dow down 767 points today

NEW YORK (AP) — U.S. stocks plunged to their worst loss of the year today and investors around the world scrambled to sell on worries about how much President Donald Trump's worsening trade war will damage the global economy.

China let its currency, the yuan, drop to its lowest level against the dollar in more than a decade, a move that Trump railed against as "currency manipulation."

It also halted purchases of U.S. farm products. The moves follow Trump's tweets from last week that threatened tariffs on about $300 billion of Chinese goods, which would extend tariffs across almost all Chinese imports.

The escalating dispute between the world's largest economies is rattling investors unnerved about a global economy that was already slowing and falling U.S. corporate profits.

The S&P 500 dropped 87.31 points, or 3 percent, to 2,844.74 for its worst loss since December, when the market was wrapped in the throes of recession fears. It was down as much as 3.7% in the afternoon.

The Dow Jones Industrial Average lost 767.27, or 2.9 percent, to 25,717.74, and the Nasdaq composite fell 278.03, or 3.5 percent, to 7,726.04.

"A 3 percent drop in a day is very significant, and you're seeing sizeable moves in every major foreign market," said Rich Weiss, chief investment officer of multi-asset strategies at American Century Investments.

"I am surprised at the market's surprise at China's retaliation," he said. "We started a fight, and when the opponent punches back, I'm not sure why we're surprised."

The sell-off began today in Asia, where indexes lost more than 1 percent, and intensified as it swept westward through Europe to the Americas. Investors in search of safety herded into U.S. government bonds, which sent yields plunging.

The yield on the 10-year Treasury note, which rises with expectations of stronger economic growth and inflation, fell to its lowest level since Trump's 2016 election energized markets, down to 1.72 percent from 1.85 percent late Friday. The yield on the two-year note, which is more influenced by interest-rate moves from the Federal Reserve, sank to 1.58 percent from 1.71 percent. Both are unusually large moves.

4:09 p.m.

NEW YORK (AP) — Stocks plunged today on Wall Street after China let its currency sink to the lowest level in more than a decade, escalating its trade war with the U.S.

The Dow Jones Industrial Average sank at 767.27 points today, or 3%, its worst drop of the year.

Technology companies and banks fell the most. Apple and Bank of America each fell 5 percent.

Bond prices soared, sending yields sharply lower, as investors sought safety.

China's central bank allowed the yuan to sink below seven per dollar. Investors are concerned that Beijing is using its currency as a weapon in its trade skirmish with Washington.