U.S. markets ended the week deep in negative territory after President Donald Trump warned he might cancel a meeting with China’s President Xi Jinping and is weighing a “massive increase in tariffs” on Chinese goods.
The announcement reignited fears of a renewed U.S.–China trade war, sending shockwaves through global markets.
By midday Friday, the S&P 500 had fallen 1.43% to 6,639, giving up all of its weekly gains. The Nasdaq slid roughly 2%, and the Dow Jones Industrial Average lost 1%, extending the sell-off sparked by Trump’s social media comments. He accused China of “hostile actions,” claiming Beijing was preparing to impose export controls on rare earth elements and other key materials critical to global supply chains.
The technology sector bore the brunt of the decline. AMD plunged 6%, Broadcom dropped 3%, and Qualcomm sank 5% after reports that Chinese regulators launched an antitrust probe into the U.S. chipmaker. Earlier, Chinese stocks had already weakened as Beijing implemented rare-earth export restrictions and a special port fee on U.S. vessels, escalating tensions ahead of the next round of trade talks.
Market analysts warn that the combination of trade risks, fiscal uncertainty, and tightening global liquidity could keep investors on edge. With the Fear & Greed Index slipping toward neutral and volatility climbing, sentiment across equities and crypto alike remains fragile heading into the new week.
