(CNBC) -- Stocks fell sharply on Tuesday as investor optimism around the upcoming U.S.-China trade talks faded.
The Dow Jones Industrial Average closed 314 points lower, or 1.2%. The S&P 500 slid 1.6% while the Nasdaq Composite dropped 1.7%.
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The U.S. expanded its trade blacklist to include some of China’s top artificial intelligence firms on Monday, punishing Beijing for its treatment of predominantly Muslim ethnic minorities. China’s foreign ministry said to “stay tuned” for retaliation following the blacklist expansion. Also weighing on stocks was a statement by the State Department saying that the U.S. would impose a visa ban on Chinese officials linked to the Muslim abuses.