The US markets ended deeply in red on Friday with Nasdaq settling lower by over 3.50 percent after President Donald Trump threatened to retaliate against China's expansion of export controls on rare earths. Trump accused China of becoming very hostile and threatened a massive increase in tariffs on Chinese products coming into the U.S. Trump also said he would no longer meet with Chinese President Xi Jinping at the Asia-Pacific Economic Cooperation forum in South Korea, because now there seems to be no reason to do so.
On the economic data front, a report released by the University of Michigan showed its reading on U.S. consumer sentiment was virtually unchanged in the month of October. The University of Michigan said its consumer sentiment index edged down to 55.0 in October from 55.1 in September. Street had expected the index to slip to 54.2. On the inflation front, the University of Michigan said year-ahead inflation expectations ebbed to 4.6 percent in October from 4.7 percent in September. Long-run inflation expectations held steady at 3.7 percent.
Dow Jones Industrial Average declined 878.82 points or 1.9 percent to 45,479.6, Nasdaq dropped 820.19 points or 3.56 percent to 22,204.43 and S&P 500 fell 182.6 points or 2.71 percent to 6,552.51.
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