Major indices on the New York stock market fell across the board on the 10th (local time), expressing concern over the re-ignition of the US-China trade conflict after US President Donald Trump criticized China's move to control rare earth exports and foreshadowed a massive tariff hike. In particular, the tech-heavy Nasdaq Composite Index plummeted nearly 3.6%, marking its largest drop in six months.

New York Stock Market Sees a Flood of Selloffs Immediately After Trump's Remarks

On this day, the Dow Jones Industrial Average on the New York Stock Exchange (NYSE) closed at 45,479.60, down 878.82 points (-1.90%) from the previous trading day. The S&P 500 index recorded 6,552.51, a drop of 182.60 points (-2.71%), and the tech-focused Nasdaq Composite Index closed at 22,204.43, down 820.20 points (-3.56%). Notably, the S&P 500 and Nasdaq indices showed their biggest declines in six months since the announcement of the Trump administration's tariff policy, fully revealing the market's shock.

The New York stock market, which had been setting new all-time highs in early trading, rapidly cooled after President Trump, through his social networking service Truth Social, warned of high-intensity retaliatory measures, including massive tariff hikes on Chinese products. He categorized China's move to restrict rare earth exports as an 'act of hostility,' and stated that the reason for a meeting with President Xi Jinping at the Asia-Pacific Economic Cooperation (APEC) meeting, which was scheduled to be held in South Korea in two weeks, had disappeared, suggesting a hardening of US-China relations.

Big Tech Stocks Plunge Simultaneously, VIX Index Hits 4-Month High

Large technology stocks, which had been sharply rising recently on the back of the Artificial Intelligence (AI) boom, saw significant drops alongside profit-taking. As China serves as a major supply chain and a key demand source for these companies, concerns about deepening trade conflict are believed to have had a direct impact.

The stock prices of major Big Tech companies, including Nvidia (-4.95%), Tesla (-5.06%), Amazon (-4.99%), Apple (-3.44%), and Meta (-3.83%), all saw sharp declines. The drops of semiconductor companies AMD (-7.8%) and Broadcom (-5.91%) were also pronounced.

The CBOE Volatility Index (VIX), which reflects market uncertainty and fear, surged to 22.44 on this day, reaching its highest level in four months since June 19. Market strategists analyzed that investors reacted with a 'sell first' mentality to the potential re-emergence of a trade dispute between the world's two largest economies.

Oil Prices Drop Sharply, Gold Price Rises on Safe-Haven Preference

Internal uncertainty, such as the US federal government shutdown entering its 10th day, also contributed to the dampening of investor sentiment. Furthermore, international oil prices plummeted due to the prediction that President Trump's threat of high tariffs on China would lead to a global economic slowdown and a decrease in crude oil demand.

The closing price for West Texas Intermediate (WTI) crude oil futures for November delivery on the New York Mercantile Exchange (NYMEX) recorded $58.90 per barrel, a sharp drop of 4.24% from the previous session, marking its lowest point in five months since May. Brent crude oil futures for December delivery on the London ICE Futures Exchange also fell by 3.82%.

Conversely, with the strengthening preference for safe-haven assets, the price of gold futures recovered the $4,000 per ounce level. The closing price for gold futures for December delivery on the New York Mercantile Exchange (COMEX) finished at $4,000.40 per ounce, up 0.7% from the previous session.