Trump’s Truth Dump – US Market Wrap

Escalating trade tensions between the US and China rippled through global markets Friday, slamming stocks, oil and cryptocurrencies while driving investors toward the relative safety of Treasuries and gold.

Trump’s warning of a “massive increase” in China tariffs jolted Wall Street at the close of an already turbulent week marked by growing concern over a potential bubble in artificial intelligence companies. His comments sent the S&P 500 tumbling 2.7%, while the tech-heavy Nasdaq 100 slid 3.5%. The dollar weakened after its strongest week of the year, and crude dropped more than 4%.

Trump said he saw “no reason” to meet Chinese President Xi Jinping, citing “hostile” export controls. His social-media post followed a string of actions by both Washington and Beijing aimed at restricting the flow of technology and materials between the two nations — all ahead of a planned leaders’ meeting in Asia later this month.

Large declines in risk assets have been scarce lately, which may have amplified Friday’s sharp market reaction.

Since the tariff-driven selloff in April, the S&P 500 has rebounded on optimism surrounding AI and expectations of Fed rate cuts. The index is now trading near its richest valuation in 25 years — leaving little margin for disappointment.

More than 420 stocks in the S&P 500 fell, marking its worst session since April. In another sign of strain, the VIX volatility index climbed to 22. The 10-year Treasury yield dropped eight basis points to 4.06%. Bitcoin declined roughly 4%, while commodities from copper to soybeans, wheat, and cotton also retreated.