Stocks fell Wednesday morning on rising concerns over a potential trade war between the U.S. and China.
China on Wednesday announced new tariffs on 106 U.S. products, including soybeans, cars, aerospace and defense.
As a result, automakers such as Ford and General Motors shares fell sharply near the market open, but rallied to up more than 1 percent. Telsa's stock dropped as much as 5 percent before paring its loss and rising to up 7 percent. China is a key market for the electric car maker.
Aerospace company Boeing was down 1.7 percent. The company announced a $37 billion order for its planes from China last year.
U.S. machine manufacturers that serve the agricultural and construction industries also fell. Deere was down more than 3 percent and Caterpillar fell 0.5 percent.
China's move came after the Trump administration on Tuesday named a list of Chinese imports it plans to target for tariffs.
Sectors covered by President Donald Trump's proposed tariffs include products used for robotics, information technology, communication technology and aerospace.