U.S.-China Trade Tensions Roil Global Markets as Trump Hikes Tariffs

On Friday, global markets experienced a tumultuous turn as President Donald Trump intensified trade tensions by announcing increased tariffs on Chinese goods to 100% and introducing export controls against critical software. The bold move, reacting to China's newly imposed export limits on rare earth minerals, triggered the largest one-day percentage declines in the S&P 500 and Nasdaq since mid-April.

Technology stocks led the descent, with major players like Alibaba and JD.com seeing sharp losses. As a result, the Dow Jones Industrial Average plummeted 878.82 points, with the S&P 500 and Nasdaq also suffering heavy hits. Concerns over a prolonged U.S.-China trade war and its impact on the economy rippled across global stock markets.

The dramatic market response followed Trump's social media hints at further impending levies and amplified worries about canceled talks with President Xi Jinping. In the bond market, Treasury yields reached multi-week lows as investors sought safety, while fluctuations in currency markets raised volatility concerns globally.

(With inputs from agencies.)