• Dow Jones, S&P 500 and Nasdaq all suffer sharp drops
  • Investors lose faith in trade truce between US and China

US stock markets fell sharply on Tuesday as investors lost faith in a trade truce between the US and China that had been negotiated by Donald Trump at last week’s G20 summit.

The Dow Jones industrial average lost close to 800 points – just over 3%. Other market indexes also fell sharply: the S&P 500 lost 3.2% and the Nasdaq dropped 3.7%.

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Author: Dominic Rushe and agencies