To The Moon

A Sudden Turn South

Markets were blindsided Friday after Trump reignited tariff fears, triggering the sharpest one-day selloff since April. The $NASDAQ(.IXIC)$ plunged 3.6%, wiping out a month’s worth of gains, while the $S&P 500(.SPX)$ dropped 2.7% and the Dow Jones Industrial Average lost 879 points (1.9%).

$NVIDIA(NVDA)$ $Apple(AAPL)$ $Advanced Micro Devices(AMD)$ $Tesla Motors(TSLA)$

Stocks started the day in the green, buoyed by steady earnings optimism, until Trump’s midday post about China’s new export restrictions on rare earth minerals sent markets tumbling. Declaring he would be “forced… to financially counter” Beijing’s move, the president later announced plans for a 100% tariff on all Chinese imports effective November 1.

By Friday evening, Nasdaq futures were down over 1%, signaling continued volatility ahead.

Tariff Flashback

Tariffs

Investors have seen this movie before, and they didn’t like the ending. The last time the trade war narrative flared, the S&P 500 dropped 19% before recovering to new highs.

Markets are now weighing whether this is another temporary bout of tariff anxiety, or the start of a deeper recalibration. The political and economic stakes are high: renewed tariffs could disrupt U.S. supply chains, weigh on inflation, and chill global trade.

Investor Takeaways

• Sentiment shock: October’s reputation for volatility reasserted itself as trade uncertainty replaced the complacency that had driven markets to record highs.

• Sector stress: Tech led the retreat (–4.1%) as investors braced for renewed pressure on global supply chains.

• Defensive winners: Consumer staples eked out a modest +0.1% gain, underscoring a rotation toward safety.

• Macro watch: Rare earth mineral controls by China could have broad implications for EV, chip, and defense industries if escalation continues.

Looking Ahead

Earnings season begins next week, just in time to test whether fundamentals can steady markets amid tariff turbulence and a lingering government shutdown.

• Tuesday: Goldman Sachs, JPMorgan Chase, Wells Fargo

• Wednesday: ASML, Bank of America, Morgan Stanley

• Thursday: Charles Schwab, Taiwan Semiconductor Manufacturing

• Friday: American Express

Meanwhile, the delayed Consumer Price Index report, now expected Oct. 24, will offer critical insight into inflation trends and rate expectations.

The Bottom Line

A single tweet revived trade war ghosts and sent stocks tumbling from record highs. Whether this marks a short-term shock or a longer correction depends on Washington’s next move, and Beijing’s response. With earnings season about to begin, corporate results, not political noise, will determine whether the market regains its footing or finally pauses for breath…

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This summary is for informational purposes only and does not constitute financial advice. Investors should conduct their own research before making investment decisions.