12:14 PM EDT, 10/10/2025 (MT Newswires) -- US equity indexes sank in midday trading on Friday after President Donald Trump warned of a "massive" increase in trade tariffs on China, the world's second-largest economy.

The Nasdaq Composite slumped 2.1% to 22,524.4, with the S&P 500 down 1.5% to 6,635.9 and the Dow Jones Industrial Average 1% lower at 45,919.1. All sectors except utilities and consumer staples fell intraday, with consumer discretionary and technology emerging as the steepest decliners.

"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 said in a Truth Social post Friday. China is "becoming very hostile, and sending letters to countries throughout the world, that they want to impose export controls on each and every element of production having to do with rare earths."

"I was to meet [China's] President Xi [Jinping] in two weeks, at APEC, in South Korea, but now there seems to be no reason to do so," Trump said. "Dependent on what China says about the hostile 'order' that they have just put out, I will be forced, as President of the United States of America, to financially counter their move," referring to the "monopoly positions" that the US possesses.

Gold futures jumped 1.5% to $4,032.92, and silver futures advanced 2% to $48.13.

Most US Treasury yields fell, with the two-year yield down 7.7 basis points to 3.52% and the 10-year rate 8.9 basis points higher at 4.06%.

The ICE US Dollar Index, which measures greenback strength against a basket of major currencies, slid 0.6% to 98.92.

In company news, Mosaic (MOS) said its preliminary Q3 phosphate production fell short of expectations because of "unexpected mechanical issues" at its Riverview sulfuric acid plant and utility interruptions at Bartow in September. Shares of Mosaic slumped 8.1% intraday, the steepest decline on the S&P 500.