02:40 PM EDT, 10/10/2025 (MT Newswires) -- US benchmark equity indexes and oil prices tumbled intraday after President Donald Trump threatened to boost tariffs on China.

The Nasdaq Composite declined 2.6% at 22,442.1 after midday Friday, while the S&P 500 fell 1.9% to 6,610.9. The Dow Jones Industrial Average lost 1.3% to 45,774.8. Barring consumer staples, all sectors were in the red, led by technology and consumer discretionary.

Trump said his administration was considering "a massive increase" of tariffs on Chinese products, among other measures, as Beijing announced new export restrictions on rare earth materials.

Trump said he might call off his upcoming meeting with Chinese President Xi Jinping in South Korea.

Semiconductor stocks tumbled, with chipmaking giant Nvidia ( NVDA ) down 2.7%, among the steepest drops on the Dow. Broadcom ( AVGO ) , Advanced Micro Devices ( AMD ) , Micron Technology ( MU ) , and Qualcomm ( QCOM ) were among the tech stocks showing sizable drops.

Rare-earth stocks MP Materials ( MP ) , USA Rare Earth ( USAR ) , and NioCorp Developments ( NB ) were surging intraday.

E-commerce giant Amazon.com ( AMZN ) was the worst performer on the Dow, down 3.9%.

West Texas Intermediate crude oil slumped 4.2% to $58.95 a barrel amid concerns that renewed trade tensions could dampen oil demand.

US Treasury yields were lower intraday, with the 10-year rate decreasing 9.7 basis point to 4.05% and the two-year rate losing 7.9 basis points to 3.52%.

In economic news, US consumer sentiment was little changed in October amid persistent concerns about inflation and labor market challenges, preliminary results from a University of Michigan survey showed.

"Pocketbook issues like high prices and weakening job prospects remain at the forefront of consumers' minds," Surveys of Consumers Director Joanne Hsu said. "At this time, consumers do not expect meaningful improvement in these factors."

Survey results showed "little evidence" that the ongoing federal government shutdown had moved consumers' perception of the economy, according to Hsu.

The Bureau of Labor Statistics said it will release the September consumer inflation report Oct. 24. The report, which was originally slated for an Oct. 15 release, has been rescheduled due to the government shutdown.

The shutdown, which is now into its 10th day, is likely to stretch into next week, with Congress still seen deadlocked on a funding plan, CNN reported Friday. The Senate not scheduled to hold any votes until next Tuesday.

Federal Reserve Governor Christopher Waller said Friday that while he continues to support lower interest rates, the central bank needs to be "cautious about it" amid contrasting economic indicators, CNBC reported.

In other company news, Mosaic (MOS) shares sank 8.5%, the worst S&P 500 performer. The company said its preliminary third-quarter phosphate production fell short of expectations due to "unexpected mechanical issues" at its Riverview sulfuric acid plant and utility interruptions at Bartow in September.

Bristol-Myers Squibb ( BMY ) agreed to acquire privately held ribonucleic acid medication manufacturer Orbital Therapeutics in an all-cash deal worth about $1.5 billion. Bristol-Myers shares were down 1.7%.

Gold was up 0.8% at $4,003.60 per troy ounce, while silver rose 0.1% to $47.23 per ounce.