U.S. Stocks Plunge As Trump Threatens 'Massive Increase' In Tariffs On China

Market Overview - Stocks have experienced a decline, with major averages moving to new session lows, including the Nasdaq down 431.12 points (1.9%) at 22,593.50, the S&P 500 down 84.10 points (1.3%) at 6,651.01, and the Dow down 364.63 points (0.8%) at 45,993.79 [1] Trade Relations - President Trump has threatened retaliation against China's export controls on rare earths, accusing China of "becoming very hostile" and indicating a potential "massive increase" in tariffs on Chinese products [2] - Trump's decision to cancel a meeting with Chinese President Xi Jinping at the APEC forum raises concerns about escalating trade tensions between the U.S. and China [3] Economic Indicators - The University of Michigan's consumer sentiment index showed a slight decrease to 55.0 in October from 55.1 in September, which was better than the expected drop to 54.2 [4] - Year-ahead inflation expectations decreased to 4.6% in October from 4.7% in September, while long-run inflation expectations remained steady at 3.7% [5] Sector Performance - Significant declines were noted in computer hardware and semiconductor stocks, with the NYSE Arca Computer Hardware Index and the Philadelphia Semiconductor Index falling by 3.9% and 3.5%, respectively [6] - Oil service stocks also dropped sharply, with the Philadelphia Oil Service Index down by 3.2% to its lowest intraday level in over a month [6] - Networking, brokerage, and biotechnology stocks showed notable declines, while gold stocks increased due to a rebound in gold prices [7] Global Market Trends - In the Asia-Pacific region, stocks mostly declined, with Japan's Nikkei 225 Index down by 1.0% and Hong Kong's Hang Seng Index down by 1.7% [7] - Major European markets also experienced downturns, with the U.K.'s FTSE 100 Index down by 0.6%, and both the German DAX Index and French CAC 40 Index down by 0.9% [8] - In the bond market, treasuries surged in response to Trump's threats, leading to a decrease in the yield on the benchmark ten-year note by 8.3 basis points to 4.065% [8]