S&P and Nasdaq Slump as Stocks Tumble on Trump’s China Tariff Threat

The S&P 500 index suffered a significant blow, plummeting over 2 percent for the first time in six months, as investors grew increasingly uneasy following a prolonged period of market gains. The sudden downturn was triggered by concerns over a potential escalation in trade tensions between the United States and China, after President Trump hinted at imposing new tariffs on Chinese goods. The Nasdaq composite also took a hit, experiencing a notable decline as tech stocks came under pressure. The market's sharp reversal caught many investors off guard, as the S&P 500 had been on a remarkable run, with a string of consecutive gains that had pushed the index to new heights. The threat of renewed tariffs on China, a key trading partner, sparked fears of a possible slowdown in global economic growth, leading to a broad sell-off across various sectors. As the day's trading came to a close, market participants were left to ponder the implications of Trump's tariff threat and the potential consequences for the markets in the days ahead.