05:02 PM EDT, 04/07/2025 (MT Newswires) -- US benchmark equity indexes closed mostly lower Monday following a volatile trading session as President Donald Trump threatened more tariffs against China.

The S&P 500 fell 0.2% to 5,062.3, while the Dow Jones Industrial Average fell 0.9% to 37,965.6. The Nasdaq Composite, which entered a bear market Friday, characterized by a decline of at least 20% from its peak, edged 0.1% higher at 15,603.3 on Monday.

The S&P 500 tumbled 6% on Friday, while the Dow declined 5.5%, accumulating sharp losses for all three indexes on a weekly basis.

Barring communication services and technology, all sectors closed lower Monday, led by real estate and materials.

Trump said his administration would impose additional 50% tariffs on China, effective Wednesday, unless Beijing reverses its recent retaliatory actions.

"Additionally, all talks with China concerning their requested meetings with us will be terminated!" Trump said in a Monday social media post. "Negotiations with other countries, which have also requested meetings, will begin taking place immediately."

US Treasury yields moved higher, with the 10-year rate jumping 22.1 basis points to 4.21% and the two-year rate gaining 12 basis points to 3.79%.

Trump's tariffs have the potential to fuel inflation and slow down economic growth, JPMorgan Chase ( JPM ) Chief Executive Jamie Dimon said. "Whether or not the menu of tariffs causes a recession remains in question, but it will slow down growth," Dimon said.

Separately, BlackRock ( BLK ) CEO Larry Fink said that most business leaders he's spoken to believe the economy is "probably in a recession right now," The Wall Street Journal reported.

Wells Fargo Investment Institute lowered its 2025 target level for the S&P 500 and cut earnings estimates for companies part of the index to reflect a projected US economic slowdown amid an aggressive tariff policy.

Trump's latest reciprocal tariffs pose major challenges for Apple ( AAPL ) and Tesla (TSLA) as the duties are likely to create cost and demand headwinds for the tech giants, Wedbush Securities said. Apple ( AAPL ) shares fell 3.7%, the worst performer on the Dow, while Tesla lost 2.6%.

The Trump administration's aggressive tariffs may dent mid-cap banks' earnings and loan growth amid rising concerns than the US economy may be heading into a recession, Morgan Stanley said. Separately, UBS Securities said major US airlines' 2025 earnings and revenue are likely to face pressure as tariffs increase the risks of an economic downturn at home.

West Texas Intermediate crude oil dropped 1.7% to $60.96 a barrel Monday, following a nearly 11% slump last week. "Oil prices continued to slide as escalating trade tensions fueled recession fears," D.A. Davidson said in a note.

In other company news, Nvidia ( NVDA ) shares rose 3.5%, the top gainer on the Dow, followed by Amazon.com ( AMZN ) , up 2.5%.

Dollar Tree ( DLTR ) was the second-best performer on the S&P 500, up 7.8%, as Citigroup upgraded the discount retailer's stock to buy from neutral and adjusted its price target to $103 from $76.

Gold declined 1.2% to $3,000.40 per troy ounce, while silver rose 2.5% to $29.97 per ounce.

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