U.S. Stock Market prediction: Wall Street to sink under President Donald Trump's 100 per cent tariff on China? Here's what experts are saying

Core Insights - The U.S. and China are engaged in a renewed trade war, with President Trump announcing a 100% tariff on Chinese goods effective November 1, in response to China's export controls on rare earth minerals [8][9] - Rare earth elements are essential for various industries, including technology and renewable energy, and China holds a dominant position in their production and processing [2][8] - The announcement of tariffs has led to significant declines in major tech stocks, with Nvidia, Tesla, Amazon, and AMD all dropping over 2% [3][9] Market Reactions - The stock market reacted negatively to the tariff announcements, with the Nasdaq falling by 3.6% and the S&P 500 down by 2.7% [8][9] - Concerns about high equity valuations and market jitters were expressed by investment professionals, indicating a potential for a market correction [5][9] - Despite the trade tensions, some investors believe that the ongoing AI theme will continue to drive market performance, suggesting that the impact of tariffs may be limited [6][9] Tariff Details - Current tariffs on Chinese goods stand at 30%, imposed by Trump due to allegations of unfair practices and involvement in the fentanyl trade [7][9] - The new 100% tariffs are part of a broader strategy to counter what Trump describes as "extraordinarily aggressive" actions by China [8][9]