The major averages reverse course and fell hard in the afternoon as President Trump threatened to call off the meeting with the Chinese President and also threatened massive tariff hikes to counter the Chinese resistance to export rare earth metals. The Dow Jones Industrial Average fell 878 points or 1.9%. after rising over 300 points this morning. The S&P 500 fell 182 points or 2.7%, is worst day since April. The Nasdaq fell 820 points or 3.56%.

Friday’s declines wiped out the S&P 500′s gain for the week, as the benchmark lost 2.4% for the last five days. The Nasdaq and the Dow saw weekly losses of 2.5% and 2.7%, respectively.

The sell off was led by tech and any stock with ties to China. The CBOE Volatility index spiked 30% to a 4 month high as traders rushed to buy protection. The chip stocks took a hit all down 4% or more.

Very few stocks in the S&P 500 closed higher. The utilities favored the best. Pepsi was a bright spot, up 3% on earnings and guidance the other day.

U.S. Treasury yields fell as investors ran for safety. The 10-year Treasury fell 9 basis points to 4.05%, while the 2-year Treasury yield fell 7 basis points to 3.52%. The 30-year Treasury yield dropped 9 basis points to 4.63%.

In the commodity space, oil fell 4% on the day and down over 5% on the week on a cease fire in Gaza and renewed trade fears with China that may threaten global growth.

Gold was a bright spot up a percent while crypto currencies took a hit down over 3%.

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