It was the worst day for the S&P 500 since April, when tariff threats roiled markets.
Trump said he’s mulling higher levies as well as “many other countermeasures” because of “the hostile ‘order’ that they have just put out” restricting the export of rare earth metals. Trump also seemingly canceled his meeting with Chinese President Xi Jinping in South Korea in two weeks, saying “now there seems to be no reason to do so.”
Wafer fab equipment stocks Lam Research, Applied Materials, and KLA Corp which all count China as their top market, underperformed, as did iPhone seller Apple.
Chip stocks Advanced Micro Devices, Intel, Broadcom, and Nvidia were hit on the news, as rare earths are needed components for semiconductor production. For Tesla, it’s a similar story given its footprint in China and the importance of rare earths for EVs.
Shares of several other major automakers with large footprints in China sank, including Chinese EV titans like BYD, Nio, and XPeng, along with Stellantis, which heavily relies on revenue from sales in China. EV makers Rivian and Lucid, which source raw materials and or batteries from China, were also down following the post.
There was also a lot of plain old dumping of recent winners: Super Micro Computer, Coinbase, and Robinhood Markets lagged since Trump’s post as investors cut risk. (Robinhood Markets Inc. is the parent company of Sherwood Media, an independently operated media company subject to certain legal and regulatory restrictions.)
An unlikely subscription charge is increasingly showing up next to Netflix and Amazon Prime on our credit card statements. Believe it or not, Americans are lining up to buy monthly subscriptions to... the car wash.
Lilly Endowment, a nonprofit associated with the founders of the pharmaceutical giant Eli Lilly, has been on a selling spree this month.
The insider has sold more than 1 million shares of Lilly in October in a series of sales worth roughly $599 million, according to regulatory filings. Though the Lilly Endowment has been selling off steadily as the stock climbed over the past couple years, the last time it sold more than 1 million shares in a month was June 2024.
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