Wall Street stumbled out of the gate Wednesday as escalating tensions between the U.S. and China reignited investor anxiety, sending major indexes into the red and snapping a winning streak.

The Dow Jones Industrial Average opened with a sharp 300-point drop, or 0.7%, while the S&P 500 slid 0.53%. The tech-heavy Nasdaq wasn’t spared either, falling 0.57% at the open.

This downturn comes as fears over a renewed flare-up in U.S.-China trade relations, particularly centered around semiconductor technology, rattled market confidence. At the heart of the unease are fresh disputes surrounding chip exports — a flashpoint that once again places the tech sector, and companies like Nvidia (down 0.6%), under pressure.

The sell-off broke a six-day winning streak for the S&P 500, as Wall Street’s recent optimism collided with geopolitical and economic headwinds. Adding fuel to the fire, growing concerns over the ballooning U.S. deficit — compounded by a recent warning from Moody’s — have further soured sentiment. President Trump’s legacy tax cuts, combined with ongoing trade tensions, are being reexamined in light of potential fiscal and diplomatic repercussions.

Investors also took note of rising Treasury yields, signaling heightened caution in the bond market. The 30-year yield crossed the psychologically important 5% threshold, while the 10-year yield jumped above 4.5% — both levels reflecting a nervous macroeconomic backdrop.

Despite the day’s downward pressure, not all outlooks are gloomy. Derek Chollet, head of JPMorgan’s Geopolitics Center, told CNBC that while risks are elevated, moments like these can present strategic opportunities for long-term investors.

Still, the day’s opening bell sent a clear message: global friction and economic uncertainty continue to cast a long shadow over the markets — and investors are paying close attention.