Sharp Decline in Wall Street amid U.S.-China Trade Tensions

Wall Street's indexes dropped after President Trump's announcement of potential tariff hikes on Chinese imports due to a rare earths dispute. This move disrupted market calm and raised global trade tensions, affecting major stocks and boosting market volatility. A pending meeting with China’s President also faced uncertainty.

Wall Street's indexes experienced a sharp decline on Friday following President Donald Trump's announcements regarding potential tariff hikes on Chinese imports. This sparked renewed tensions in the ongoing trade dispute over rare earths.

President Trump, in a Truth Social post, indicated a potential steep increase in tariffs and dismissed the scheduled meeting with China's President Xi Jinping in South Korea. The news sent ripples through financial markets, which were previously buoyed by expectations of Federal Reserve interest rate cuts.

Key stock indexes, such as the Dow Jones, S&P 500, and Nasdaq Composite, saw significant losses. Sectors like technology and financials were notably affected. Additionally, U.S.-listed shares of major Chinese companies plummeted as trade tensions flared once again.

(With inputs from agencies.)