Sou Hu Cai Jing·2025-10-31 18:07Core Viewpoint - The U.S. Senate's narrow vote (51-47) to terminate Trump's "global tax" policy has led to a significant market reaction, causing a massive drop in tech stocks and a surge in gold prices, reflecting the volatility in global capital markets [1][3][6]. Group 1: Market Reaction - Meta Platforms experienced a dramatic stock price drop of 11%, resulting in a market capitalization loss of $214 billion (approximately 1.5 trillion RMB) [3]. - Tesla's market value decreased by 506.3 billion RMB, while the Nasdaq index fell by 1.57%, with the S&P 500 and Dow Jones also turning negative [3][4]. - Despite strong earnings reports from Apple and Amazon, the overall market sentiment remained bearish, impacting their stock performance [3]. Group 2: Economic and Policy Context - The termination of the "global tax" policy is seen as a response to rising inflation and increased costs for American consumers, with the inflation rate reaching 2.7% in August and projected to rise to 3% by year-end [6]. - The uncertainty surrounding U.S. government policies, including the recent government shutdown, has led to significant economic disruptions, with small businesses reportedly losing $30 billion weekly [4][6]. - The Federal Reserve's recent interest rate cut of 25 basis points has been undermined by the lack of reliable economic data due to the government shutdown, leading to further market instability [8]. Group 3: Global Market Implications - The turmoil in U.S. markets has negatively affected Chinese stocks, with the Nasdaq Golden Dragon China Index dropping by 1.88%, although some education stocks like New Oriental and TAL Education saw gains [7]. - The current situation may lead to a shift in investment towards emerging markets, as foreign capital could seek opportunities in Chinese assets amidst the chaos in the U.S. [7]. - The surge in gold prices, reaching $4,027 per ounce, indicates a flight to safety among investors, reflecting heightened risk aversion in the market [1][7].