NEW YORK (AP) — U.S. stocks are dropping, and a monthslong calm on Wall Street may be breaking after President Donald Trump threatened to crank tariffs even higher on China. The S&P 500 fell 1.1% Friday and erased what had been a modest gain for the week. The Dow Jones Industrial Average dropped 361 points, and the Nasdaq composite sank 1.7%. Stocks had been on track for a slight gain in the morning, until Trump took to his social media platform and said he’s considering a massive increase of tariffs on Chinese imports. He’s upset at restrictions China has placed on exports of its rare earths.

THIS IS A BREAKING NEWS UPDATE. AP’s earlier story follows below.

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