Wall Street saw its worst day in nearly six months after President Donald Trump ramped up pressure on China, threatening to ‘significantly increase’ tariffs if trade talks stall. The Dow Jones Industrial Average plunged almost 900 points, while the S&P 500 and Nasdaq also recorded steep losses, with technology and trade-exposed stocks hit hardest.

During a White House briefing, Trump accused China of dragging its feet in ongoing trade negotiations and warned that the US is ready to escalate economic measures. Following the remarks, investor sentiment turned sharply negative, with a noticeable flight to safe-haven assets like bonds and gold.

Analysts warn that an escalation in the trade war could further disrupt global supply chains and hurt corporate profits, especially in sectors like semiconductors, smartphones, and automotive manufacturing. There are growing concerns that prolonged tensions may weigh on economic growth into year-end.

Financial strategists are urging investors to brace for heightened volatility, while also advising a focus on company fundamentals and policy signals from global central banks. In the coming weeks, all eyes will be on developments in US-China negotiations and upcoming Federal Reserve policy statements.

While the swift downturn has rattled Wall Street, some bargain hunters are already looking for opportunities among beaten-down tech leaders and defensives—proving that even in turbulent times, savvy investors see silver linings.