Here is what you need to know.
Trump threatens China with tariffs on $200 billion worth of goods. President Donald Trump said the new tariffs would take effect if Beijing did not lower recently announced tariffs on US goods and failed to address the theft of US intellectual property by Chinese companies.
Stocks are getting slammed. China's Shanghai Composite (-3.78%) led Asia lower, and Germany's DAX (-1.32%) trails in Europe. The S&P 500 is set to open down 1% near 2,746.
The dollar hits an 11-month high. The US dollar index hit a high of 95.27 on Tuesday, its best since July.
OPEC sees a strong oil market ahead. "If OPEC and its allies continue to produce at May levels, then the market could be in deficit for the next six months," a source told Reuters ahead of Friday's meeting to decide output.
Morgan Stanley warns investors are in more danger than they realize. Michael Wilson, the firm's chief equity strategist, says its too early to turn defensive, but pinpoints one sector where you can stay safe.
A Wall Street chief strategist explains how the next recession could come out of left field. "Our odd, unconventional recovery could have a shocking result," Jim Paulsen, the chief investment strategist at Leuthold Group, told Business Insider.
The US Senate rejects Trump's deal to lift the ban on China's ZTE. The Senate voted 85 to 10 in favor of a defense-spending bill that would overrule Trump's deal to lift sanctions on the Chinese tech giant.
Elon Musk warns Tesla shorts. "They have about three weeks before their short position explodes," Musk tweeted to Fred Lambert, the editor of the electric-auto news site Electrek.
Earnings reports trickle out. FedEx and Oracle report after markets close.
US economic data is light. Housing starts and building permits will be released at 8:30 a.m. ET. The US 10-year yield is down 4 basis points at 2.88%.