Wall Street drops to its worst day since April after Trump's threats of tariffs shatter its calm

Market Reaction - U.S. stocks experienced a significant decline, with the S&P 500 dropping 2.7%, marking its worst day since April. The Dow Jones Industrial Average fell by 878 points (1.9%), and the Nasdaq composite decreased by 3.6% [1][4]. Tariff Concerns - President Trump announced a potential "massive increase of tariffs" on Chinese imports, citing dissatisfaction with China's restrictions on rare earth exports, which are essential for various manufacturing sectors [2][3]. Broader Market Impact - The increase in trade tensions led to widespread declines across Wall Street, with approximately six out of every seven stocks in the S&P 500 falling. This included major technology companies like Nvidia and Apple, as well as smaller firms [4]. Market Valuation Issues - Prior to the tariff announcement, U.S. stocks were criticized for being overpriced, following a nearly 35% increase in the S&P 500 since April. The index remains close to its all-time high [5][6]. Company-Specific Performance - Levi Strauss saw a significant drop of 12.6% despite reporting stronger-than-expected quarterly profits. The company faced challenges due to heightened expectations after a nearly 42% surge in its stock price for the year [6][7].