Stock Market Update: Nasdaq Sinks Over 2.4% as Trump Warns of Steeper China Tariffs
Stock Market Update: Nasdaq Sinks Over 2.4% as Trump Warns of Steeper China Tariffs
Silver Prices Surge Amid U.S.-China Trade Tensions and Market Selloff
Date: October 10, 2025
Author: William Collins, Consultant in Stock Markets – Eurasia Business News
Article No. 1823
Global markets faced fresh turbulence on Thursday after U.S. President Donald Trump threatened a “massive increase” in tariffs on Chinese imports, reigniting fears of an escalating trade war between the world’s two largest economies. The remarks came as China tightened export controls on rare earth minerals, critical for manufacturing semiconductors and advanced technologies.
Trump’s comments also included the potential cancellation of a planned meeting with Chinese President Xi Jinping, sparking a broad market selloff across U.S. equities.
Stock Market Reacts Sharply to Tariff Threats
Major U.S. indexes tumbled as investors rushed to reduce risk exposure:
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Nasdaq Composite: Fell over 2.4%
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Dow Jones Industrial Average: Dropped nearly 500 points (about 1.1%)
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S&P 500: Declined more than 1%
Technology stocks with significant supply chain exposure to China bore the brunt of the decline. In contrast, shares of U.S.-based rare earth mining companies surged amid expectations of higher domestic demand.
The renewed volatility underscores investor anxiety about intensifying trade tensions and their potential to disrupt global supply chains and economic recovery. The tariff threat also marks a reversal of the administration’s earlier move to reduce tariffs from 145% to around 30% earlier this year.
Rare Earth Minerals at the Core of the Conflict
The rare earth mineral dispute lies at the heart of the escalating conflict. These materials are essential for producing everything from smartphones and electric vehicles to defense technologies. China currently dominates the global supply, giving it significant leverage in trade negotiations.
Analysts warn that any prolonged restrictions on these exports could have far-reaching consequences for technology manufacturers and defense contractors worldwide.
Gold and Silver Prices Soar on Safe-Haven Demand
Amid the market turmoil, investors turned to precious metals as a safe haven.
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Gold prices surged above $4,000 per ounce, trading as high as $4,038.60 and touching a low of $3,961.20 during the session. Futures ended the day up roughly 1%, marking an eighth consecutive weekly gain fueled by geopolitical tensions and inflation concerns.
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Silver prices followed suit, rallying near record highs. Spot silver traded around $47.53 per ounce, peaking at $50.21 per ounce, just below its recent all-time high above $51 set earlier this week. Silver has soared over 70% year-to-date, significantly outpacing gold due to tight supply, strong industrial demand, and fiscal uncertainty.
Outlook: Market Volatility to Persist
Analysts predict continued market volatility as trade rhetoric intensifies. Investors are closely watching whether the White House will follow through with higher tariffs and how China will respond.
Precious metals are expected to remain strong in the near term, supported by safe-haven buying and concerns over global economic instability.