{"id":214783,"date":"2025-10-10T17:22:07","date_gmt":"2025-10-10T17:22:07","guid":{"rendered":"https:\/\/www.newsbeep.com\/us\/214783\/"},"modified":"2025-10-10T17:22:07","modified_gmt":"2025-10-10T17:22:07","slug":"trump-just-celebrated-the-bull-markets-third-birthday-by-wiping-2-off-the-sp-500-lashing-out-at-china-over-the-great-rare-earths-tug-of-war","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us\/214783\/","title":{"rendered":"Trump just celebrated the bull market’s third birthday by wiping 2% off the S&P 500, lashing out at China over the great rare earths tug of war"},"content":{"rendered":"

The third anniversary of the bull market took an unexpected turn on Friday as President Donald Trump\u2019s latest comments on China sent shockwaves through financial markets, erasing 2% from the S&P 500 in a single trading session. What was expected to be a modest celebration of America\u2019s longest stretch of market gains in a decade quickly transformed into another episode of geopolitical brinkmanship, this time over the world\u2019s most strategic resources: rare earth metals and a fresh round of Chinese import restrictions<\/a>.<\/p>\n

Investors entered Friday morning with cautious optimism. The S&P 500 had drifted higher for much of the week, setting fresh record highs along the way. But by midday, sentiment had shifted sharply after Trump issued a lengthy Truth Social post<\/a> stating, among other things, that the U.S. is considering a \u201cmassive increase of Tariffs on Chinese products\u201d coming into the U.S.<\/p>\n

\u201cSome very strange things are happening in China!\u201d Trump wrote against the backdrop of a scheduled meeting later in October with President Xi Jinping in South Korea, ahead of the Asia-Pacific Economic Cooperation summit. Trump wrote that China is \u201cbecoming very hostile,\u201d arguing that the export controls on rare earths would clog world markets for the precious resource. Repeatedly in 2025, Trump\u2019s tariffs-heavy trade regime has been countered by China<\/a>, which holds the trump card of rare earths, essential for high-tech manufacturing.<\/p>\n

The S&P 500 slid 2% in afternoon trading, while the Dow<\/a> Jones Industrial Average dropped more than 600 points. Tech and green energy sectors, both heavily reliant on rare earth minerals such as neodymium and dysprosium, bore the brunt of the sell-off.<\/p>\n

Rare Earths and Real Risks<\/p>\n

Rare earth elements \u2014 a group of 17 metals critical for producing everything from smartphones and wind turbines to missile guidance systems \u2014 have long been a choke point in U.S.\u2013China relations. China controls more than 60% of global production and nearly 90% of processing capacity.<\/p>\n

Trump\u2019s post accused Beijing of \u201ca rather sinister and hostile move, to say the least.\u201d He said he had not spoken to his Chinese counterpart, but that he was surprised by the new restrictions, and that there \u201cseems to be no reason\u201d to go ahead with meeting Xi in two weeks\u2019 time.<\/p>\n

Chinese tech companies saw steep declines, with\u00a0Alibaba,\u00a0Baidu, and\u00a0JD.com\u00a0among the hardest hit; Alibaba dropped 10%, Baidu over 8%, and JD.com<\/a> by more than 6%.\u200b U.S. technology stocks with significant China exposure, like\u00a0Nvidia<\/a>,\u00a0AMD, and\u00a0Tesla<\/a>, also fell; Nvidia lost 2.4%, AMD dropped 5.8%, and Tesla slipped 3.9%.<\/p>\n

Companies tied to rare earth minerals, on the other hand, saw dramatic gains. MP Materials\u00a0rose by as much as 15%, USA Rare Earth\u00a0surged as much as 19%\u200b, and\u00a0NioCorp Developments\u00a0climbed by 8%.\u200b\n<\/p>\n

Fortune Global Forum returns Oct. 26\u201327, 2025 in Riyadh. CEOs and global leaders will gather for a dynamic, invitation-only event shaping the future of business. Apply for an invitation.<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"The third anniversary of the bull market took an unexpected turn on Friday as President Donald Trump\u2019s latest…\n","protected":false},"author":2,"featured_media":214784,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[37],"tags":[28,144,12,112,121918,5948],"class_list":["post-214783","post","type-post","status-publish","format-standard","has-post-thumbnail","category-markets","tag-business","tag-china","tag-donald-trump","tag-markets","tag-rare-earth-metal","tag-tariffs-and-trade"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/214783","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/comments?post=214783"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/214783\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media\/214784"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media?parent=214783"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/categories?post=214783"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/tags?post=214783"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}