Dow drops 450 points on trade, economic concerns

The Dow Jones Industrial Average fell 450 points, or 1.6 percent, on Monday as concerns over the U.S. economy and trade tensions with China grow.

The Dow plunged below 26,000, a level it first broke in January 2018.

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Driving the losses were renewed fears about growing weak points in the economy as bond yields continued to decline. A Bank of America analysis also raised the chances of a recession to 1 in 3, up from 1 in 5 a few months back.

President TrumpDonald John TrumpKaine: Obama called Trump a 'fascist' during 2016 campaign Kaine: GOP senators should 'at least' treat Trump trial with seriousness of traffic court Louise Linton, wife of Mnuchin, deletes Instagram post in support of Greta Thunberg MORE's trade war with China has been a central concern for traders. Trump announced new tariffs on Chinese imports last month following unsuccessful negotiations, and China responded by weakening its currency and further cutting off purchases of U.S. agriculture.

The tensions have led investors to believe that a trade deal with Beijing is unlikely before the 2020 elections.

Businesses were also concerned as tensions between Hong Kong and China spilled over Monday as flights out of Hong Kong's international airport, one of the world's busiest, were canceled amid ongoing anti-government protests.