US stock futures slumped on Tuesday after China upped the ante in its trade spat with the US, rattling investors’ nerves in the wait for big Wall Street’s banks to kick off earnings season.

Dow Jones Industrial Average futures (YM=F) slid roughly 0.6%, while those on the S&P 500 (ES=F) dropped 0.9%. Contracts on the tech-heavy Nasdaq 100 (NQ=F) sank over 1.2% to lead the building retreat.

The mood has soured after stocks’ strong rebound on Monday thanks to a fresh round of retaliation from Beijing to President Trump’s trade salvos. Its latest moves to target US shipping have undermined recently revived hopes that the US and China will avoid an all-out trade war.

China has placed sanctions on five US-linked units of South Korean shipbuilding firm Hanwha Ocean, effectively barring Chinese companies from doing business with them. Both sides have already used special port fees to try to get the upper hand in maritime shipping.

Focus is now turning to the third quarter earnings season, which kicks off in earnest on Tuesday morning with results from JPMorgan Chase (JPM), Citigroup (C), Goldman Sachs (GS), and Wells Fargo (WFC). Wall Street bank stocks have rallied for most of the year so far, and analysts expect to see rising profits from the group.

With key economic reports stalled by the government shutdown, investors and the Fed lack a clear view of the economy’s direction. The release of the September CPI consumer inflation report scheduled for Wednesday has been delayed to Oct. 24. Data on retail sales and producer prices are also expected to be pushed back.

The blackout of economic reports puts added weight on Powell’s speech on Tuesday at the NABE annual meeting, expected to provide insights into the Fed’s view of the economy and its thinking on monetary policy.

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