US Stocks Plunge on Renewed US-China Trade Tensions; Cryptocurrencies Face Indirect Pressure
Wall Street's months-long calm shattered abruptly as President Trump's threat to escalate tariffs on Chinese imports triggered a broad market selloff. The S&P 500 plunged 2.7%—its steepest single-day decline since April—while tech-heavy Nasdaq cratered 3.6%. The abrupt deterioration in trade relations between the world's two largest economies sent shockwaves through risk assets.
Digital assets face potential secondary effects as investors reassess global growth prospects. Though not explicitly mentioned in the tariff rhetoric, cryptocurrencies historically exhibit heightened volatility during equity market turmoil. Market participants are closely monitoring whether capital rotates into decentralized assets as traditional markets wobble.
The selloff gained momentum after TRUMP signaled potential cancellation of planned talks with China's Xi Jinping, upending earlier trade détente expectations. Rare earth export restrictions imposed by Beijing—critical for electronics manufacturing—appear to have triggered the presidential rebuke. Market technicians note key support levels breached across major indices may exacerbate selling pressure.
