Market Turmoil: SPY, QQQ Drop Amid Trump’s Tariff Threat and Weak Consumer Sentiment
US equities faced sharp declines as former President Donald TRUMP reignited trade tensions with China, threatening "a massive increase of Tariffs" on Chinese imports. The S&P 500 ETF (SPY) and Nasdaq 100 ETF (QQQ) both tumbled following his Truth Social post, which also cast doubt on planned APEC Summit talks with Xi Jinping.
China escalated the conflict by imposing rare-earth export controls requiring government approval for products containing as little as 0.1% Chinese materials. Reciprocal shipping fees will take effect October 14, marking the latest volley in an ongoing trade war that began during Trump's presidency.
Consumer sentiment remains depressed, with the University of Michigan's October preliminary index at 55.0—a 22% annual decline though slightly above estimates. The dual pressures of trade uncertainty and economic anxiety create headwinds for risk assets.
