U.S. Equities Slide as Trump Tariff Threat Rattles Markets, Chip Stocks Hit Hard
U.S. equities reversed early gains Friday after former President TRUMP threatened "massive" tariffs on Chinese goods, triggering a broad selloff. The Dow, S&P 500, and Nasdaq each fell more than 1% as trade tensions flared over China's rare earth export restrictions.
Semiconductor stocks bore the brunt of the decline, with Advanced Micro Devices (AMD) and Arm (ARM) among the worst performers in the S&P 500. The PHLX Semiconductor Index (SOX) plunged 4% as rare earth supply concerns mounted—China controls critical minerals essential for chip production.
PepsiCo bucked the trend, extending gains after beating earnings estimates. Meanwhile, Qualcomm (QCOM) faced additional pressure from a reported Chinese antitrust probe into its Autotalks acquisition.
