Trump’s Market Mania: A Rollercoaster of Tariffs, Deals, & Battleships

Trade Relations and Tariffs - President Trump announced a new 100% tariff on Chinese goods and fresh limits on tech exports, effective November 1st, 2025, reminiscent of previous tariff announcements that led to significant market declines [2] - The S&P 500 technology index dropped 4%, and the semiconductor sector fell 6.3% following the announcement, with Alibaba and JD.com shares declining 8.4% and 6.2% respectively [2] - The average U.S. tariff rate has climbed to nearly 17%, the highest since 1935, generating approximately $30 billion per month for the Treasury [5] Pharmaceutical Industry Developments - President Trump announced lower drug price deals with nine pharmaceutical companies, including Amgen and Merck, in exchange for aligning U.S. drug prices with those in other developed nations and receiving a three-year exemption from tariffs on pharmaceutical ingredients [6] - Analysts expressed mixed views, with some predicting negligible effects on sales and profits, while others saw potential positive momentum for the sector into 2026 [7][8] Technology Sector and AI Chips - NVIDIA Corporation received approval to resume shipping high-performance AI chips to China, subject to a 25% federal fee on each chip sold, which could benefit the U.S. Treasury [4] - Following the announcement, NVIDIA shares rose between 2% and 4%, indicating market optimism about re-entering a significant market [4] Military and Defense Industry - President Trump unveiled plans for a new Navy "battleship" as part of an expanded naval fleet, with the first vessel, the USS Defiant, set to begin construction soon [9] - Shares of South Korean shipbuilder Hanwha Ocean surged 12.5% following the announcement, reflecting market enthusiasm for defense contracts [10] Market Performance and Economic Indicators - The S&P 500 is nearing the 7,000 mark with an 18% gain for the year, while the Nasdaq Composite is up 22%, driven by strong performance in technology and AI sectors [13] - Despite tariff-induced volatility, the market has shown resilience, with traditional safe havens like gold and silver experiencing significant price increases [13]