WASHINGTON (AP) — Spooked by worsening tensions over trade between the world's two largest economies, investors are selling stocks and commodities and buying safer assets.

The Dow Jones industrial average and the Nasdaq composite index have each dropped more than 1.4 percent in early trading. That follows brisk selling in international markets. Hong Kong's Hang Seng index dropped 2.8 percent and France's CAC 40 slipped 1.4 percent.

The sell-off came after President Donald Trump threatened to impose tariffs on an additional $200 billion in imports from China, and the Chinese government said it would retaliate.

Large U.S. companies with significant overseas business were hit especially hard. Boeing's stock shed 4.3 percent, Caterpillar 4 percent and GE 2.2 percent. Commodities such as oil, copper and soybeans fell.

Bond prices climbed as investors turned more cautious. The yield on the 10-year Treasury note fell to 2.88 percent from 2.92 percent.