🔥 Weekly Market Update: Tariffs Shock Shaken Markets

Last week’s markets were shaken by escalating US–China trade tensions, triggering a sharp pullback in global equities.

Global stock markets swung from optimism to caution as trade war fears resurfaced. After fresh record highs early in the week, a surprise announcement on tariffs sparked broad-based losses.

📰 What’s happening?

President Trump threatened a “massive increase” in tariffs on Chinese imports, cancelling a planned Xi Jinping meeting at APEC. The Dow dropped 1.05%, the S&P 500 slid 0.8%, and the Nasdaq Composite plunged nearly 2% on Friday alone.

Meanwhile, rare-earth miners rallied—MP Materials surged 11%, USA Rare Earth jumped 15%—as supply-chain concerns mounted.

❓ Why it matters

Elevated tariffs risk higher input costs, lower corporate profits, and a broader economic slowdown. Investor sentiment turned fragile, ending what had been a calm rally. The market is now bracing for earnings season, with JPMorgan and Citigroup reports due next week under this fraught backdrop.

💡 Opportunity

• Defensive sectors like Utilities and Consumer Staples may offer stability amid volatility.

• Rare-earth and mining stocks stand to benefit if export controls tighten.

• When sentiment recovers, look for oversold quality tech names with strong balance sheets and secular growth drivers.

🔑 Bottom line

Trade tensions are back in focus. Short-term volatility is likely as markets digest tariff developments and hinge on upcoming corporate results. Staying diversified and emphasising quality can help navigate the uncertainty.

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Disclaimer: This article constitutes the author’s personal views and is for entertainment and educational purposes only. It is not to be construed as financial advice in any form. Please do your own research and seek advice from a qualified financial advisor. From time to time, I have positions in all or some of the mentioned stocks when publishing this article. This is a disclosure - not a recommendation to buy or sell stocks.