The stock markets fell on Friday after President Donald Trump "spooked markets" when he took to Truth Social to threaten more tariffs, according to a report.
The New York Times reported that the S&P 500 fell 2.7%, which is the worst in the past six months. The same thing happened with the Nasdaq Composite, which had the worst tumble since the announcement of the Trump tariffs in April.
“One of the Policies that we are calculating at this moment is a massive increase of Tariffs on Chinese products coming into the United States of America,” Trump wrote on his social media site. “There are many other countermeasures that are, likewise, under serious consideration.”
“I was to meet President Xi in two weeks, at APEC, in South Korea, but now there seems to be no reason to do so,” Trump continued. “One of the policies that we are calculating at this moment is a massive increase of tariffs on Chinese products coming into the United States of America.”
The report explained that this is the first time in the past two months that the S&P 500 has fallen more than 1%.
“Expectations for a China trade deal just got swept off the table,” CNBC quoted Jeff Kilburg, founder of KKM Financial, saying. “Profit takers are out in full force.”
"WELCOME TO THE STOCK MARKET - Where Trump could say something and $SPY wipes out a month worth of gains in one day," options trader John J. Smith wrote on X.
Economist Anders Åslund wrote, "The US could greatly benefit from having a grownup as president: Just after Trump learned that he would not get Nobel's Peace Prize he threatened China with higher tariffs & drove down the stock market 2%... We had feared the toddler would have punished Norway..."
"Classic Donnie," said one person watching the Dow lose billions. Others called him names.