US Market Tumbles & closed sharply lower Friday after President Donald Trump declared additional 100% Tariff on China imports from China, reigniting fears of a trade war that rocked global markets earlier this year.
The Dow fell 879 points, or 1.9%. The broader S&P 500 dropped 2.71% and the tech-heavy Nasdaq Composite slid 3.56% with major tech stocks falling more than 5% with the likes of Tesla, amazon, Taiwan Semiconductor etc. The S&P 500 and Nasdaq posted their worst day since April as a slide in tech stocks led the market lower. The Dow posted its worst day since May. The S&P 500’s drop of 2.71% saw the index shed roughly $1.56 trillion in market value in one day. Nvidia was down by 4.88% , Meta around 4% & Apple around 3.5%.
Earlier during day reason for US Market Tumbles was tweet shared by POTUS which ignited sharp sell off. Trump said in a social media post he is considering a “massive increase” in tariffs on imports from China, adding “There is no way that China should be allowed to hold the World ‘captive’” over rare earth exports. Some very strange things are happening in China! They are becoming very hostile, and sending letters to Countries throughout the World, that they want to impose Export Controls on each and every element of production having to do with Rare Earths, and virtually anything else they can think of, even if it’s not manufactured in China.
Apart from that he mentioned about Trade hostility & relationship with China which fueled further heat made US Market tumbles further. Trump said on truth social “I have always felt that they’ve been lying in wait, and now, as usual, I have been proven right! There is no way that China should be allowed to hold the World “captive,” but that seems to have been their plan for quite some time, starting with the “Magnets” and, other Elements that they have quietly amassed into somewhat of a Monopoly position, a rather sinister and hostile move, to say the least. But the U.S. has Monopoly positions also, much stronger and more far reaching than China’s. “
He also mentioned about his meeting with Chinese , “I have not spoken to President Xi because there was no reason to do so. This was a real surprise, not only to me, but to all the Leaders of the Free World. I was to meet President Xi in two weeks, at APEC, in South Korea, but now there seems to be no reason to do so. The Chinese letters were especially inappropriate in that this was the Day that, after three thousand years of bedlam and fighting, there is PEACE IN THE MIDDLE EAST. I wonder if that timing was coincidental? Dependent on what China says about the hostile “order” that they have just put out, I will be forced, as President of the United States of America, to financially counter their move. For every Element that they have been able to monopolize, we have two. I never thought it would come to this but perhaps, as with all things, the time has come. Ultimately, though potentially painful, it will be a very good thing, in the end, for the U.S.A. One of the Policies that we are calculating at this moment is a massive increase of Tariffs on Chinese products coming into the United States of America. “
“The sell-off has the potential to evolve into a larger correction, especially if the US-China trade truce is over,” Michael O’Rourke, chief market strategist at JonesTrading, said in an email. “Throughout the summer, greed has far outpaced fear in the US equity market, and the high level of complacency leaves investors vulnerable.”