Wall Street Today: Nasdaq Composite, S&P 500 and DJIA All Sink on U.S-China Rare-Earths Fight
The Nasdaq Composite, S&P 500 and Dow-30 all tumbled some 2% or more Friday as renewed U.S.-Chinese trade tensions sent all of the "Magnificent Seven" stocks and many other companies' shares sharply lower.
The $Nasdaq Composite Index (.IXIC.US)$ shed 820.20 points (3.6%) to a 22,204.43 finish after earlier setting a new intraday record high before U.S. President Donald Trump's social-media post about trade problems sank the market.
The $S&P 500 Index (.SPX.US)$ likewise gave back 182.60 ticks (2.7%) to 6,552.51, while the $Dow Jones Industrial Average (.DJI.US)$ lost 878.82 points (1.9%) to 45,479.60.
Macro
The sell-off marked a sharp reversal for all three indexes, which had been setting record intraday and closing highs in recent days.
The key indexes had been positive on Friday as well until the late morning New York time, when Trump took to social media to slam Beijing for announcing new export controls on Chinese rare-earth metals and magnets. Rare earths are a key ingredient of many high-tech goods, and China produces a large part of the global supply.
However, China's Commerce Ministry announced Thursday that foreign suppliers would need government approval to export products Chinese rare-earth materials account for 0.1% or more of an item's total value.
Beijing also said the Asian nation's companies will need licenses going forward to export certain lithium batteries and the equipment and materials needed to make them.
Trump criticized the new rules on social media, saying that he no longer plans to get together with Chinese President Xi Jinping at an Asia Pacific Economic Cooperation summit that both plan to attend shortly in South Korea.
"I was to meet President Xi in two weeks, at APEC, in South Korea, but now there seems to be no reason to do so," Trump wrote on Truth Social.
"Our relationship with China over the past six months has been a very good one, thereby making this move on Trade an even more surprising one," the American leader wrote. "There is no way that China should be allowed to hold the World 'captive,' but that seems to have been their plan for quite some time, starting with the 'Magnets' and, other Elements that they have quietly amassed into somewhat of a Monopoly position, a rather sinister and hostile move, to say the least."
After the bell, Trump announced in a separate post that he would impose new 100% tariffs on Chinese goods, plus export controls on certai U.S. software exports, presumably on shipments bound for the Asian nation.
"Based on the fact that China has taken this unprecedented position, and speaking only for the U.S.A., and not other Nations who were similarly threatened, starting November 1st, 2025 (or sooner, depending on any further actions or changes taken by China), the United States of America will impose a Tariff of 100% on China, over and above any Tariff that they are currently paying," Trump wrote. "Also on November 1st, we will impose Export Controls on any and all critical software."
Both sides had already recently announced planned port fees against each other's commercial ships when docking in the other side's country.
The sudden trade tensions sent the $CBOE Volatility S&P 500 Index (.VIX.US)$ soaring 32.1% at last check to 21.71.
$Gold Futures (DEC5) (GCmain.US)$ and $Silver Futures (DEC5) (SImain.US)$ also soared some 1.3% in recent trading to change hands at or near record highs in a "flight-to-safety" move amid the trade tensions.
Conversely, $Bitcoin (BTC.CC)$ sank 3.5% to $116,819.51 as of shortly before 4:30 p.m. ET, while $Ethereum (ETH.CC)$ gave up 7.6% to 4,005.01 on an apparent "risk-off
Moo-vers
The "Magnificent Seven" stocks, which have large exposure to international markets, all fell sharply on the trade dispute.
$Tesla (TSLA.US)$led the way downward with a 5.1% decline, following closely by $Amazon (AMZN.US)$ (5% weaker) and $NVIDIA (NVDA.US)$ (off 4.9%). Meanwhile, $Meta Platforms (META.US)$ lost 3.9%, $Apple (AAPL.US)$3.5%, $Microsoft (MSFT.US)$ 2.2% and $Alphabet-A (GOOGL.US)$ 2.1%.
Elsewhere on Wall Street, Friday's other significant percentage decliners included:
-- $Serve Robotics (SERV.US)$, down 15.7%. SERV, which builds robots for "last-mile" delivery, sank after announcing a planned $100 million offering of new shares. The news came one day after SERV soared 28.6% on a deal with $DoorDash (DASH.US)$ to expand a partnership under which Serve robots will help with DoorDash deliveries across America.
-- $Ondas Holdings (ONDS.US)$, off 12.1%. The wireless- and drone-solutions firm eased for a second session after rising 60.1% between its Oct. 1 close and its $11.70 intraday record high set Wednesday. In fact, ONDS sold for less than $1 a share as recently as May 28, rising more than 1,150% between then and Wednesday's peak.
-- Select crypto-related stocks, which fell on cryptocurrencies' Friday pullback. Losing crypto stocks included $Circle (CRCL.US)$ (11.7% weaker) and $Bitmine Immersion Technologies (BMNR.US)$ (off 11.2%).
Meanwhile, the day's noteworthy percentage gainers included:
-- $Applied Digital (APLD.US)$, up 16.1%. The digital-infrastructure firm rallied after its fiscal Q1 revenues and loss came in better than analysts had expected. Shares even hit an all-time intraday high during the session.
-- Certain North American rare-earth-metals firms, which rose for a second day on the new Chinese export controls for the key substances. Gainers included $MP Materials (MP.US)$ (up 8.4%), $USA Rare Earth (USAR.US)$ (5% better) and $Critical Metals (CRML.US)$ (1.8% stronger).
-- $Oklo Inc (OKLO.US)$, better by 6.5%. The next-generation nuclear-power stock rose for a third straight session in part on CanaccordGenuity initiating coverage earlier this week with a "Buy" rating and $175 price target (18.9% above Friday's closing price). Oklo has gained 54.4% since just Sept 17's close following other positives, such as a recent U.S.-U.K. memo of understanding on jointly developing next-generation nuclear energy.
-- $Energy Fuels (UUUU.US)$, 3.3% stronger. The uranium-fuels firm rose on a combination of investor enthusiasm for nuclear power coupled with B. Riley recently boosting the stock's price target to $22 from an earlier $11. And while UUUU primarily focuses on uranium, it also has a rare-earth-metals business.
Disclaimer: This presentation is for informational and educational use only and is not a recommendation or endorsement of any particular investment or investment strategy. Indexes are unmanaged and cannot be directly invested in. Past performance is no indication of future results. Investing involves risk and the potential to lose principal. Investment information provided in this content is general in nature, strictly for illustrative purposes, and may not be appropriate for all investors. It is provided without respect to individual investors' financial sophistication, financial situation, investment objectives, investing time horizon, or risk tolerance. You should consider the appropriateness of this information regarding your relevant personal circumstances before making any investment decisions. Past investment performance does not indicate or guarantee future success. Returns will vary, and all investments carry risks, including loss of principal.
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
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Jerry Kronenberg
Director of Financial Content
Former top editor at Seeking Alpha, Fidelity.com, TheStreet.com and UPI.
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