Markets reacted sharply to Donald Trump's latest post on the TruthSocial social media platform. The Dow Jones Industrial Average plunged and is now down 1.2%. The situation of the S&P 500 index is similar, currently 1.7%. in the red. The biggest change was recorded by the Nasdaq, whose valuation is now 2.3 percent higher. lower compared to the opening of the day.
It is worth noting that today's session, before the US president's entry, was calm and green, and the Nasdaq even reached a new record high.
Donald Trump: “I see no reason to meet Xi”
In a post on TruthSocial, the US president announced that the planned meeting with Chinese President Xi Jinping during the APEC summit in South Korea may not take place. Donald Trump also stated that he was considering “a drastic increase in tariffs on Chinese products imported into the United States“. According to him, China is using its resources of rare earth metals to “imprison the world.
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Beijing's actions in recent days seem to confirm these allegations. China has tightened control over the rare earth metals market, introducing a requirement to obtain an export license for products containing these raw materials in quantities exceeding 0.1%. their values.
Technology giants under pressure
The largest declines affected technology companies, which are particularly exposed to deterioration of trade relations with China.
Nvidia's shares are losing over 2%, AMD's over 5%, and Tesla's over 3%.
At the same time, U.S. crude oil prices have fallen as investors fear higher tariffs could negatively impact demand.
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According to B. Riley Wealth's chief market strategist, Art Hogan, Technology companies saw the biggest declines because they have strong ties to China in both production and sales. Hogan emphasized that the United States' relations with the world's second-largest economy have clearly deteriorated.
