Trade tensions have increased for several weeks as the United States and China both raised tariffs on each other’s goods, and the United States placed restrictions on US firms doing business with Chinese tech giant Huawei.Tech stocks bore the brunt of the pain, as the technology sector could be particularly hard-hit if the trade war escalates. The Nasdaq (COMP) was down more than 1%. S&P 500 (SPX) was down nearly 1%.The latest sign of worsening trade tensions came when China’s Ministry of Commerce spokesperson said the US must stop taking action against China companies and signaled further escalation of the trade dispute ahead. “China urges the US to stop the wrongdoings to avoid the further impact on the China-US trade relations,” said Gao Feng, spokesman for the ministry. “China will take necessary measures to resolutely safeguard the legitimate rights and interests of Chinese enterprises.”And he suggested that if the US doesn’t back down, there will be no further negotiations aimed at resolving the dispute.”If the US would like to keep on negotiating it should, with sincerity, adjust its wrong actions. Only then can talks continue,” Gao also said according to multipe news reports.US oil fell 3%, tumbling below $60 a barrel, as trade war concerns and bearish inventory data weighed on oil prices. The yield on the 10-Year Treasury is now 2.35% — the lowest since December 2017. Best Buy (BBY) fell 5% after warning it may have to raise prices because of the trade war.But L Brands (LB) soared 7% on a better-than-expected sales at Victoria’s Secret.Markets in China closed sharply lower with the Shanghai Composite and the Hang Seng both ending more than 1% lower.Stocks were also sharply lower across Europe, where mounting worries about Brexit, the state of UK Prime Minister’s Theresa May’s government and European parliamentary elections also weighed on investor confidence.