S&P 500 sheds over 2.5%, Dow Jones loses 878 points

US stocks fell sharply on Friday after President Donald Trump threatened to escalate his trade war with China, while risk appetite also weakened amid the ongoing US government shutdown.

At the close, the Dow Jones Industrial Average dropped 1.90% (-878 points) to 45,479, booking a 2.73% weekly loss.

The S&P 500 fell 2.71% (-182 points) to 6,552, its biggest one-day decline since April, down 2.43% for the week.

The Nasdaq Composite Index slid 3.56% (-820 points) to 22,204, losing 2.53% during the week.

In Europe, the STOXX Europe 600 fell 1.25% to 564, posting a 1.10% weekly decline.

Elsewhere, Germany’s DAX dropped 1.50% to 24,241. France’s CAC 40 fell 1.53% to 7,918; and the UK’s FTSE eased 0.86% to 9,427.

In Japan, the Nikkei 225 retreated 1.0% to 48,088 points, while the broader Topix lost 1.85% to 3,197. Both recorded weekly gains of 4.8% and 2.15%, respectively.

On oil, December Brent futures dropped 3.82% (-$2.49) to $62.73 a barrel, down 2.8% on the week.

November WTI slid 4.24% (-$2.61) to $58.90, a 3.25% weekly loss.

Meanwhile, gold futures for December delivery added 0.70% (+$27.8) to $4,000.40 an ounce, up 2.34% on the week.

Earlier on Friday, Trump threatened higher tariffs on China in a Truth Social post, accusing Beijing of becoming “very hostile” after tightening controls on rare-earth exports.