SPY, QQQ Tumble as Trump Tariff Bombshell and Health Rumors Rattle Markets—Here’s What You Need to Know
Markets reel as Trump's tariff talk and swirling health rumors send SPY and QQQ stumbling—traders brace for volatility ahead.
Tariff Tremors Hit Hard
Trump's latest tariff ruling isn't just noise—it's a market-moving quake. SPY and QQQ felt the immediate shock, with investors scrambling to reposition amid fears of renewed trade war tensions. No specifics were given, but the threat alone was enough to trigger a sell-off.
Health Rumors Fuel Uncertainty
Whispers about Trump's health—unconfirmed, unsubstantiated, but utterly unavoidable—added another layer of chaos. Traders hate uncertainty more than they hate losses, and today they got both. The algos spun up, the headlines flew, and rationality took a backseat to speculation.
Why It Matters Now
This isn't just another blip. Tariffs reshape supply chains, rewrite earnings forecasts, and remind everyone that politics is the ultimate underlying risk. And health rumors? They’re the wildcard nobody priced in—until now.
Bottom Line: Markets hate surprises, and today delivered two. Whether this dip is a buying opportunity or the start of something uglier depends entirely on what happens next—and whether the news cycle moves on before portfolios bleed out. Classic finance: panic first, ask questions later.
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Last week, a federal appeals court ruled that the legality of Trump’s tariffs overstepped his authority, although it allowed them to remain in place until October 14. Speaking from the Oval Office after a week-long public absence, TRUMP said today that he would appeal the decision to the Supreme Court as soon as tomorrow and request an expedited hearing. He added that the U.S. could be at risk of an “economic disaster” if the court fails to rule in his favor. Additionally, Trump dispelled rumors of concerns surrounding his health, calling the claims “fake news.”
Meanwhile, the manufacturing sector contracted for a sixth consecutive month as tariffs disrupt costs and planning across the industry. August’s manufacturing purchasing managers’ index (PMI) was 48.7, falling short of the estimate of 48.9. The index improved from 48.0 in July, although readings below 50 still indicate contraction. A bright spot within the negativity was that the new orders sub-index increased to 51.4 from 47.1, ending six consecutive months of contraction.
“In August, U.S. manufacturing activity contracted at a slightly slower rate, with new orders growth the biggest factor in the 0.7-percentage point gain of the Manufacturing PMI,” said Susan Spence, chair of the ISM’s survey committee. “However, since production contracted at a rate nearly equal to the expansion in new orders, the Manufacturing PMI increase was nominal.”
The disappointing manufacturing data contributed to the Atlanta Fed lowering its Q3 GDPNow estimate to 3.0% from 3.5% on August 29. The next estimate will be provided on September 4.
On another note, Bank of America said that the S&P 500 (SPX) could rise by over 50% to 9,914 by September 2027 based on the performance of previous bull markets during the past 100 years. At the same time, BofA cautioned that this scenario is based on technical analysis, which uses historical prices to estimate future prices.
Finally, Federal Housing Finance Agency (FHFA) Director Bill Pulte shared a video on X alleging that it proves that one of Fed Governor Lisa Cook’s properties listed as a primary residence is actually being rented out. In the video, NBN host Charlie LeDuff knocks on the door of a house in Ann Arbor, Michigan, and receives confirmation from a male resident that he is renting the property.
The S&P 500 (SPX) closed with a 0.69% loss while the Nasdaq 100 (NDX) fell by 0.79%.
