The Economic Timesยท2025-10-10 17:51Market Overview - US stocks experienced a significant decline, with the Dow Jones Industrial Average falling 604 points (1.3%), the S&P 500 losing 1.9%, and the Nasdaq Composite dropping 2.7% following President Trump's tariff threat on Chinese imports [12][13]. Tariff Threat and Trade Relations - President Trump announced a potential "massive" increase in tariffs on Chinese products, citing China's recent restrictions on rare earth metals as a reason for the heightened tensions [2][3][13]. - The tightening of export controls by Beijing, requiring licenses for goods containing 0.1% or more of rare earth materials, has raised concerns about China's control over this critical resource [3][13]. Impact on Technology Sector - Technology stocks, heavily reliant on China for manufacturing and sales, were among the hardest hit, with AMD plunging over 6%, Tesla dropping more than 4%, and Nvidia losing more than 2% [6][12][13]. - The "Magnificent Seven" stocks, including Amazon and Apple, also saw declines, with Amazon tumbling more than 3% and Apple slipping 2% [6][12][13]. Performance of Other Companies - Mosaic and Levi Strauss were noted as top losers in the S&P 500, with Mosaic facing production issues at its plants and Levi Strauss warning that tariffs would negatively impact its current-quarter results [8][13]. - Chinese companies listed in the US, such as Alibaba and Baidu, experienced significant drops of about 8%, while JD.com and PDD Holdings fell 6.6% and 5.2%, respectively [9][13]. Broader Economic Context - The market sell-off coincided with the ongoing US government shutdown, which has entered its 10th day, contributing to negative investor sentiment [10][13].