05:37 PM EDT, 10/10/2025 (MT Newswires) -- US equities plummeted Friday after President Donald Trump threatened China with steep tariff increases, in a technology-led market retreat that saw the Nasdaq Composite post its worst one-day slump since April.

The tech-heavy Nasdaq lost 3.6% to close at 22,204.4, while the S&P 500 shed 2.7% to 6,552.5. Both posted their biggest one-day loss since April. The Dow Jones Industrial Average declined 1.9% to 45,479.6.

Barring consumer staples, all sectors ended in the red, led by technology's 4% slide.

For the week, the Dow posted the biggest weekly loss among the three main benchmarks, down 2.7%, marking its worst weekly performance since the week of July 27. The Nasdaq fell 2.5%, its worst week since April, while the S&P 500 was down 2.4%, its steepest fall since May.

Trump said Friday that the US is considering a "massive" increase in tariffs on Chinese products after Beijing moved to restrict exports of rare earths minerals. The US leader also said he might call off his upcoming meeting with Chinese President Xi Jinping in South Korea.

"After a relatively calm few months and improving relations between the US and China, this step up in tensions has created a white knuckle moment for the markets with tech stocks under major pressure today," Wedbush Securities analyst Daniel Ives said in a note e-mailed to MT Newswires.

After market close, Trump announced additional tariffs of 100% on China, effective Nov. 1, as well as export controls on "any and all critical software."

Semiconductor stocks slumped at market close on Friday, with chipmaking giant Nvidia ( NVDA ) tumbling 4.9%, the second-worst performer on the Dow. Broadcom ( AVGO ) , Advanced Micro Devices ( AMD ) , Micron Technology ( MU ) , and Qualcomm ( QCOM ) were among the tech stocks that showed sizable drops.

E-commerce giant Amazon.com ( AMZN ) was the biggest decliner on the Dow, down 5%.

"This is all a game of high stakes poker going on between the US and China in this AI Revolution as we are also seeing more scrutiny in Beijing around Nvidia's ( NVDA ) golden chips," Ives wrote, ahead of Trump's post-market-close announcement on increased tariffs.

Rare-earth stocks jumped, with MP Materials ( MP ) surging 8.4%, NioCorp Developments ( NB ) advancing by 5.6%, and USA Rare Earth ( USAR ) up 5%.

US Treasury yields were lower, with the 10-year rate decreasing 8.2 basis point to 4.06% and the two-year rate losing 6.6 basis points to 3.54%.

West Texas Intermediate crude oil was down 4.3% at $58.86 a barrel in Friday late-afternoon trade amid concerns that renewed trade tensions could dampen oil demand.

Analysts said that a recent decision by key oil-producing nations to increase production by lower than expected will likely do little to mitigate an expected supply surplus that could drive oil prices lower next year.

Eight members of the Organization of the Petroleum Exporting Countries and its allies, dubbed OPEC+, said Sunday that they will raise combined output by 137,000 barrels per day next month, a smaller bump than expected.

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 Trump administration began laying off federal workers on Friday, administration budget chief Russell Vought said in a social media post. "The RIFs have begun," Vought wrote on the X platform, referring to reductions in force.

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 9.2%, the second-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 fell 1.6%.

Gold futures were up 0.7% at $4,000.40 per troy ounce, while silver rose 0.2% to $47.25 per ounce.