US Stock Market Today: Dow, Nasdaq, and S&P 500 Slide Amid Trump’s 55% China Tariff Threat
Wall Street Slumps on Trump’s China Tariff Rhetoric
The US stock market today opened to new uncertainty as investors grappled with a combination of frightening news headlines — ranging from President Donald Trump’s warning of a new 55% tariff on Chinese imports, to a fatal Boeing aircraft crash, a spike in the price of oil, and rising tensions with Iran.
All three of the big indexes, the Dow Jones Industrial Average, the Nasdaq Composite, and the S&P 500, also flashed robust weakness when the session opened, despite Trump having previously mentioned that a trade deal with China is “done.”
US Stock Market Today: Dow, Nasdaq, and S&P 500 Open in the Red
10:30 AM EST:
- Dow Jones lost 120 points (-0.35%)
- Nasdaq Composite fell 0.6%
- S&P 500 dropped 0.4%
Investors were not convinced by the “done deal” story. Market observers noted Trump’s announcement was unclear and added, “final approvals are still pending from both sides.”
Trump’s 55% Tariff Threat Ignites Investor Anxieties
President Trump revived fears of a worldwide trade war after declaring in a morning press conference,
"If we do not see action from Beijing quickly, we're ready to put tariffs on the remaining Chinese imports at up to 55%. We've been tough enough."
This strong bravado is jarring with his previous declaration of a done deal of the trade agreement. Experts comment that this contradiction is what keeps Wall Street on edge.
"Markets despise uncertainty, and this is precisely that," said Lindsey Bell, Chief Markets Strategist at Ally Invest. "When a president declares that a deal is done and yet also threatens tariffs, investors are not sure which signal to believe."
Boeing Crash Triggers Sector Sell-Off
In the meantime, stocks of Boeing Co. (BA) fell more than 6% at the start of trading after a reported fatal crash of a Boeing 787 Dreamliner in Southeast Asia.
The accident, which took the life of 168 passengers and crew, is being investigated. The authorities have not attributed the crash to mechanical failure but investors are preparing for possible regulatory fallout and fleet groundings.
This has caused an industry-wide decline in aerospace and defense shares, pulling the Dow down further.
Oil Prices Rocket as Iran Makes New Threats
Oil prices rose 3.7% after Iran made new threats regarding U.S. military presence in the Strait of Hormuz. Geopolitical tensions have heightened concerns about global energy supply disruptions.
“With tensions flaring in the Middle East and China trade talks in limbo, you’re looking at a perfect storm for market jitters,” said John Kilduff, partner at Again Capital.
WTI crude hit $87.30/barrel, while Brent crude rose to $90.10/barrel — levels not seen in months.
Tech Under Pressure as Nasdaq Slides
Tech shares took the worst of today’s market fall. Apple (AAPL), Nvidia (NVDA), and Tesla (TSLA) all fell back, as promised reinstatement of tariffs fueled supply chain worries and raised production cost fears.
Even with Apple’s launch event pomp and Nvidia’s latest earnings triumph, macroeconomic uncertainty in general dominated gains.
Wall Street Reaction: Investor Sentiment Wavers
“The market has been in a tizzy this week,” stated Dana Peterson, Chief Economist at The Conference Board. “Investors closely follow every word Trump says and every flicker in China. These conflicting messages cause more harm than good.”
Compounding the mayhem, market futures fell overnight after a leaked Chinese Commerce Ministry memo indicated Beijing might put ratification of the deal off until after the U.S. elections.
Investors: What’s Next?
Experts advise investors to be cautious over the next few days because:
- Trump is about to address a business round table Friday.
- The Federal Reserve has its next policy announcement slated for next week.
- China’s Vice Premier Liu He will deliver a statement by Thursday evening.
By contrast, defensive stocks like utilities, healthcare, and consumer staples have managed modest gains, as investors opt for safer haven.
Conclusion: Mixed Signals Drive Market Madness
Today’s market slide is a reflection of deeper concerns about mixed policy signals, geopolitical uncertainty, and investor fatigue from months of tariff news.
Even though President Trump said he had a “done” deal with China, his own threats of tariffs have clouded the issue, leaving traders in the dark about what comes next.
With international news—from Iran to Beijing—bearing down on sentiment, Wall Street will be paying close attention for any tangible policy steps that might restore order or add more chaos to the markets.
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