The remarks caught markets by surprise, reversing optimism that had pushed stocks to record highs earlier in the week.

The S&P 500 and Nasdaq 100 both posted their sharpest one-day losses since April, while the VIX volatility index – Wall Street’s fear gauge – spiked nearly 25%.

The market’s unstoppable rally hit a wall on Oct. 10 as President Donald Trump’s renewed tariff threats against China triggered a broad sell-off across risk assets.

Trump accused Beijing of “hostile behavior,” alleging China was preparing to impose export controls on rare earth materials.

“I was to meet President Xi in two weeks at APEC in South Korea,” he wrote on social media , “but now there seems to be no reason to do so.” He warned that the U.S. would “financially counter” the move and is considering a “

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