05:04 PM EDT, 10/14/2025 (MT Newswires) -- The Nasdaq Composite and the S&P 500 declined on Tuesday after President Donald Trump threatened to discontinue US purchases of cooking oil from China.

The Nasdaq fell 0.8% to 22,521.7, while the S&P 500 dropped 0.2% to 6,644.3. The Dow Jones Industrial Average rose 0.4% to 46,270.5. Most sectors ended higher, led by consumer staples, while technology saw the biggest drop.

In a social media post ahead of market close on Tuesday, Trump accused China of "purposefully not buying" American soybeans.

"We are considering terminating business with China having to do with cooking oil, and other elements of trade, as retribution," Trump said. "As an example, we can easily produce cooking oil ourselves."

Trump's latest threat against China signals a flare-up in trade tensions between the world's two biggest economies.

The US could impose additional tariffs of 100% on China, depending on how Beijing handles a dispute around rare earths, CNBC reported Tuesday, citing US Trade Representative Jamieson Greer.

China recently expanded its rare earths export controls to include five new elements, with stricter rules for semiconductor-related users.

China reportedly placed sanctions on five of shipbuilding firm Hanwha Ocean's US subsidiaries on Tuesday. The move followed the US decision to impose steep fees on Chinese ships docking at American ports, news outlets reported.

US Treasury yields were lower, with the the two-year rate losing 2.5 basis points to 3.49% and the 10-year rate decreasing 2.1 basis points to 4.03%.

Federal Reserve Chair Jerome Powell said downside risks to employment seem to have increased in a "somewhat softer" labor market.

"While official employment data for September are delayed, available evidence suggests that both layoffs and hiring remain low," Powell said. The outlook for inflation and employment likely hasn't changed much since the central bank's September monetary policy meeting, he added.

Markets widely expect the Fed to cut interest rates by 25 basis points later this month, following a similar move in September, according to the CME FedWatch tool.

West Texas Intermediate crude oil was down 1.7% at $58.50 a barrel in Tuesday late-afternoon trade. "Oil prices weakened amid trade-related uncertainty and after the International Energy Agency flagged softer market fundamentals," D.A. Davidson said in a note.

The Paris-based agency kept its forecasts for global oil demand growth unchanged on Tuesday, saying that petroleum consumption is expected to remain subdued.

In company news, Citigroup ( C ) , JPMorgan (JPM), Goldman Sachs (GS) and Wells Fargo ( WFC ) reported stronger-than-expected financials for the third quarter on Tuesday.

JPMorgan ( JPM ) Chief Executive Jamie Dimon said that the US economy generally "remained resilient" despite signs of softening, especially in the labor market. Citigroup ( C ) CEO Jane Fraser underscored the economy's overall strength, even though she pointed out stretched market valuations in some areas.

Wells Fargo ( WFC ) shares jumped 7.2%, the best performer on the S&P 500, while Citi rose 3.9%. JPMorgan ( JPM ) and Goldman fell 1.9% and 2%, respectively.

Albertsons ( ACI ) shares jumped nearly 14% after the grocery chain raised its full-year earnings outlook and posted better-than-expected fiscal second-quarter results.

A federal government shutdown continues. The Senate was scheduled to return to Capitol Hill Tuesday to vote on the Republicans' government funding proposal, CNN reported.

Gold was up 0.7% at $4,161.70 per troy ounce, while silver dropped 0.2% to $50.33 per ounce.