Stocks Sink After Trump Threatens 'Massive' Tariffs on China; Nasdaq Hits New Record Before Retreating; Gold Recrosses $4,000

U.S. stocks tumbled sharply Friday after former President Donald Trump threatened “massive” new tariffs on China, sparking renewed trade war fears and reversing early gains that had lifted the Nasdaq to another record high. The announcement triggered a broad risk-off move across equities, commodities, and currencies, while investors rotated into safe-haven assets such as gold and Treasuries.

Key Headlines & Market Movers

• Trump Tariff Threat Rekindles Trade War Fears: Trump’s comments on Truth Social that China was becoming “hostile” and that his team is calculating a “massive increase of tariffs” sent markets reeling. The tech-heavy Nasdaq, initially at a record intraday high, sank 2.7%, while the S&P 500 and Dow fell 2.1% and 1.5%, respectively. Semiconductor and consumer stocks were hit hardest, Nvidia (-2.7%) and AMD (-6%) reversed early strength, while Nike and Amazon dropped about 4%. Chinese ADRs plunged across the board, with Alibaba and Baidu down 8% and JD.com off 6.6%.

• Flight to Safety: Yields Fall, Gold Rebounds: Investors fled risk assets, driving the 10-year Treasury yield down to 4.05% from 4.14%. Gold regained the $4,000 level, rising 1% to $4,015 as safe-haven demand picked up. Meanwhile, the U.S. dollar slipped 0.6%, reflecting expectations that a renewed trade conflict could weaken global growth. Bitcoin also retreated 4% to roughly $117,300, underscoring broader risk aversion.

• Oil Slides as Ceasefire Takes Hold: WTI crude fell more than 4% to below $59 per barrel after reports that Israeli troops began withdrawing from Gaza following a ceasefire agreement. The de-escalation, combined with trade concerns, renewed fears of slowing demand, a reversal from the energy sector’s recent rally.

• Corporate Highlights: Mixed Picture Amid Volatility: Despite the broad sell-off, select corporate stories drew attention.

• Applied Digital (APLD) jumped 15% on a strong revenue beat and a new lease deal with CoreWeave.
• PepsiCo (PEP) gained another 3.4% after Thursday’s strong earnings and CFO shakeup, extending its leadership role in the S&P 500.
• Qualcomm (QCOM) fell 5.5% as Chinese regulators opened an antitrust probe into its Autotalks acquisition.
• Levi Strauss (LEVI) dropped 11% on warnings that tariffs could pressure margins.

S&P 500 Sector Performance

Looking Ahead

With markets rattled by renewed trade tensions and the ongoing government shutdown entering its tenth day, attention now shifts to the start of bank earnings season next week. Results from JPMorgan, Wells Fargo, and others will offer insight into credit conditions and consumer health amid the data blackout. If Trump’s tariff rhetoric escalates, investors should brace for further volatility, particularly in tech and consumer sectors with heavy China exposure. Safe-haven assets and defensive sectors could remain in favor until clearer trade policy direction emerges.

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