Filenews 11 October 2025
It was Friday morning, and the S&P 500 was just a few points away from another all-time high. Within minutes, everything was turned upside down.
A 500-word post by Donald Trump on Truth Social was enough to dematerialize 2 trillion. dollars from the value of the US market.
The former president wrote that China is "becoming hostile" to the world, accusing it of "holding global production chains hostage" through its "monopoly" on rare earths — the critical metals needed for microchips, electric vehicles and military systems.
The key point, which caused panic on Wall Street, was the phrase:
"One of the policies we're considering right now is a massive tariff hike on all Chinese products imported into the United States."
And that was enough.
According to Bespoke Investment Group, the post led to the worst session since April. The Nasdaq sank 3.56%, also at its lowest level since the spring, while the Dow Jones lost 879 points (-1.9%).
Of the 500 companies in the S&P index, 424 closed with losses, as funds were forced to liquidate positions to limit risk.
The move interrupted a 33-day period of "calm" with no change of more than 1% — the longest since 2020.
The reasons behind the sell-off
Markets believed that, despite the tensions, the US-China trade talks were on a path of normalization ahead of the Trump-Xi meeting at the end of October at APEC. The post overturned that expectation.
Until now, the market had "digested" the existing 40% tariffs, believing that the US economy can withstand and that there were exceptions for sensitive products, such as Apple's iPhones.
Now, however, the threat of 100% tariffs is raising fears of a new recession and retaliation from Beijing.
Beijing pressed the button
Trump's post came hours after China announced it was expanding export controls to rare earths — strategic metals of which it controls 70% of the global market.
The new rules require licenses for exports of any product containing rare earths, while prohibiting their use in military applications by foreign companies.
These Chinese moves were considered by Washington an "economic attack", with Trump threatening "100% tariffs and control of all critical software" - a blow that will mainly target the AI chip market.
The big losers of the day
Tech stocks were targeted:
Nvidia -5%,
AMD -8%,
Apple -3%,
Tesla -5%.
Bank of America and Wells Fargo also posted losses (-2%), as funds sold off en masse to limit exposure.
Only a few "defensive" titles, such as Walmart, moved positively.
What's coming on Monday
Analysts warn that the decline may continue, as Trump rejoined after the session closed, confirming that the new tariffs will take effect from November 1.
The concern concerns not only Chinese products, but also American companies that rely on imported components for cars, panels, technological equipment.
Some investors, however, believe the decline may be a buying opportunity — as was the case in April, when Trump's threats finally turned into a bargaining chip. As Jay Woods of Freedom Capital Markets comments to CNBC:
"It can be another pressure tactic that in the end will bring positive results. The violent fall may prove to be a new opportunity for buyers."
Temper is being tested. Despite the turmoil, the S&P 500 is still showing gains of more than 11% since the start of the year — thanks to a rally in AI that has so far outweighed any threat from tariffs or geopolitical tensions.
The difference is that this time, the shock did not come from a bank or an unforeseen event, but from a 30-word post.
And this, as a trader in New York commented, "is probably the most expensive post in the history of social networks."
