U.S.-China trade tensions drove markets lower today
Major indexes suffered steep Friday selloffs, securing weekly losses as U.S.-China trade tensions continued to ramp up. Notably, Trump's canceled meeting with President Xi trailed comments from the former saying China is "becoming very hostile." Budget Chief Russell Vought also noted that government layoffs have commenced, as the shutdown puts a bow on day 10.
The Dow dropped 878 points, marking its worst daily percentage loss since May, while the Nasdaq and S&P 500 suffered their worst sessions since April. On a weekly basis, all three indexes turned in their worst performance since August 1. Meanwhile, Wall Street's "fear gauge," the Cboe Volatility Index (VIX), surged to its highest level since June.
Continue reading for more on today's market, including:
- Profit forecast weighs down retail favorite.
- Options bulls should eye this entertainment stock.
- Plus, Japan's space deal; data center boosts AI stock; and this week's biggest news.
5 Things to Know Today
- The latest consumer price index (CPI) data is expected to be released, as the U.S. government brought back a handful of staff to complete the inflation report. (CNBC)
- Thousands of displaced Gazans are making their way back to what are now ruined homes, following the beginning of the ceasefire deal between Hamas and Israel. (Reuters)
- Japan space deal sends rocket stock surging.
- Applied Digital stock extends gains on upbeat outlook.
- What you might have missed on Wall Street this week.
Crude Futures Plunge 4% on China Tensions
Tensions on rare-earth exports between the U.S. and China pressured crude lower. November-dated West Texas Intermediate (WTI) crude fell $2.53, or 4.1%, to settle at $58.98 per barrel. For the week, oil shed 3.2%
Trump's China threat triggered a surge in gold, the safe haven asset pushing back above the key $4,000/oz mark. December-dated gold futures settled 1.3% higher at $4,024.40 per ounce. On the week, gold rose 2.7%.