U.S. Stock Market Plunges as Trump’s Tariff Threats Reignite Trade War Fears; Tech Sector Leads Steep Decline

Market Overview - The U.S. stock market experienced a significant downturn on October 10, 2025, with all major indexes closing lower and posting weekly declines, primarily due to President Trump's threats of "massive" tariffs on Chinese imports, reigniting trade war fears [1][3] - The Dow Jones Industrial Average dropped 878 points (1.9%), ending the week down 2.7%, while the S&P 500 fell 2.7% (182 points), marking its worst single-day performance since April [2] - The Nasdaq Composite tumbled 3.6% (820 points), concluding the week down 2.5%, despite reaching a new intraday record high earlier in the day [2] Key Stock Movements - PepsiCo (PEP) saw its stock surge 3.7% following impressive Q3 results that exceeded analyst estimates and the announcement of a new CFO [4] - Applied Digital (APLD) experienced a 20% increase after reporting Q1 fiscal 2026 revenue of $64.2 million, an 84% rise, along with new data center deals [5] - Semiconductor companies faced substantial declines, with Nvidia (NVDA) falling over 2%, AMD (AMD) dropping between 6.6% and 7%, and Qualcomm (QCOM) declining by over 6% due to an antitrust probe in China [6] Sector Performance - Stocks related to rare earth elements surged as investors anticipated increased demand amid escalating U.S.-China trade tensions [7] - Conversely, Levi Strauss (LEVI) plunged between 7% and 12.6% despite reporting stronger-than-expected quarterly results and raising its annual outlook, likely due to heightened market expectations [7] Economic Outlook - The ongoing U.S. government shutdown, now in its third week, has delayed the release of critical economic data, including CPI and PPI reports, contributing to market uncertainty [8] - The University of Michigan's preliminary October Consumer Sentiment index dipped to 55.0 from 55.1 in September, marking the third consecutive monthly decline [9] Upcoming Events - The third-quarter earnings season is set to begin next week, with major banks like JPMorgan Chase (JPM), Citigroup (C), and Goldman Sachs (GS) scheduled to report results, providing insights into corporate performance amid current economic conditions [10] - Federal Reserve officials, including Chair Powell, are expected to speak next week, with their comments closely monitored for indications regarding future monetary policy [11]