Futu News compiled from China Securities Journal and eCompany.
On October 10, both European and U.S. stock markets plummeted collectively after President Trump threatened on Friday to significantly raise tariffs.
All three major U.S. stock indices closed lower, $Dow Jones Industrial Average (.DJI.US)$ Down 1.9%, $Nasdaq Composite Index (.IXIC.US)$ Down 3.56%, $S&P 500 Index (.SPX.US)$The Nasdaq and S&P 500 Index recorded their largest single-day declines since April, with a drop of 2.71%.
The Dow Jones Industrial Average fell 2.73% this week; the Nasdaq Composite declined 2.53%; and the S&P 500 Index dropped 2.43%.
Leading technology stocks generally declined.$Broadcom (AVGO.US)$down nearly 6%, $Tesla (TSLA.US)$falling more than 5%,$Amazon (AMZN.US)$falling nearly 5%, $NVIDIA (NVDA.US)$Fell more than 4%, $Apple (AAPL.US)$ 、 $Meta Platforms (META.US)$ declining by over 3%, $Microsoft (MSFT.US)$、 $Alphabet-A (GOOGL.US)$ Fell by more than 2%.
$NASDAQ Golden Dragon China (.HXC.US)$The market closed down 6.1%, with an accumulated decline of 8.37% this week, and popular Chinese概念股 generally fell.$NIO Inc (NIO.US)$、 $Kingsoft Cloud (KC.US)$ $Bilibili (BILI.US)$Dropped over 9%,$Baidu (BIDU.US)$、$Alibaba (BABA.US)$、$XPeng (XPEV.US)$the decline exceeded 8%. $JD.com (JD.US)$ Fell by over 6%.
FTSE $FTSE China A50 Index Futures (OCT5) (CNmain.SG)$ The continuous overnight futures index closed down 4.26%.
Major European equity indices collectively closed lower overnight, with the Euro Stoxx 50 Index falling by 1.69%,$UK FTSE100 Index (.FTSE.GB)$declined by 0.86%,$France CAC40 Index (.CAC.FR)$Down 1.53%, $German DAX Index (.GDAXI)$ down 1.50%, FTSE$Italy MIB Index (.FTMIB.IT)$down 1.74%.
Cryptocurrencies plummeted across the board,$Bitcoin (BTC.CC)$falling below $110,000 at one point, with a decline of up to 9%.
International gold prices rise, COMEX gold futures $Gold Futures (DEC5) (GCmain.US)$ Closed up 1.58% at $4,035.5 per ounce, with a cumulative increase of 3.15% this week; COMEX silver futures $Silver Futures (DEC5) (SImain.US)$ Closed up 0.76% at $47.515 per ounce, with a cumulative decline of 0.95% this week.
International oil prices plummeted, $Crude Oil Futures (NOV5) (CLmain.US)$ closed down 5.32% at $58.24 per barrel, with a cumulative weekly decline of 4.04%. $Brent Last Day Financial Futures (DEC5) (BZmain.US)$ closed down 4.68% at $62.17 per barrel, with a cumulative weekly decline of 3.39%.
US President Trump's threat to significantly raise tariffs has raised investor concerns about the worsening of international trade tensions.
Why the Decline?
Analysts pointed out that the US's abuse of tariff measures is the main reason for the recent plunge in the cryptocurrency market. Additionally, the ongoing shutdown of the US federal government and cautious easing signals from Fed officials have also impacted the cryptocurrency market.
According to media reports, Trump threatened on Friday to significantly increase tariffs in response to stricter export controls on rare earth minerals imposed by other countries, raising fears among investors that trade relations between major economies will continue to deteriorate.
Trump stated on his social media platform Truth Social: 'As the President of the United States, I will be forced to take fiscal measures to counteract their actions. One of the policy options we are evaluating is significantly raising tariffs on products entering the United States. There are also many other countermeasures under serious consideration.'
Recently, the World Trade Organization (WTO) released the 'Global Trade Outlook and Statistics' report, indicating that global merchandise trade exceeded expectations in the first half of 2025, driven by growing demand for artificial intelligence (AI)-related products, a surge in imports to North America ahead of tariff increases, and active trade among emerging economies. Based on this, the WTO revised its forecast for global merchandise trade growth in 2025 upwards to 2.4%, up from 0.9% in August. However, due to weak global economic recovery and factors such as US tariff policies, the forecast for global merchandise trade growth in 2026 was sharply reduced to 0.5%, significantly lower than the 1.8% projected in August.
The report noted that trade momentum is expected to weaken in 2026 as global economic growth slows and new tariffs take effect. The World Trade Organization forecasts that the volume of global merchandise trade will decelerate from 2.8% in 2024 to 0.5% in 2026. The report highlighted inventory overhang, policy uncertainty, and the proliferation of trade restrictions as key downside risks.
Due to the interconnected effects of merchandise trade and production, service trade will also be indirectly impacted by tariffs. The report predicts that global services export growth will decline from 6.8% in 2024 to 4.6% in 2025, further slowing to 4.4% in 2026.
The US government shutdown enters its tenth day.
The ongoing US government shutdown has also dampened market sentiment. According to CCTV News, the US federal government 'shutdown' entered its tenth day on October 10. White House Office of Management and Budget Director Wooten announced on social media that layoffs within the federal government have begun. Wooten's post consisted of a single sentence and did not disclose specific numbers or departments affected. US media reports suggest that these layoffs targeting federal employees may involve a large number of people and have widespread impact. Agencies such as the Department of Homeland Security, the Department of Health and Human Services, and the Treasury Department are reportedly planning staff reductions.
In addition, several senior Federal Reserve officials have recently signaled a 'conditional easing' stance in public speeches, reflecting the delicate balance policymakers face between addressing economic slowdown and managing inflationary pressures.
St. Louis Fed President Musalem said on Friday that he supported last month’s 25-basis-point interest rate cut, calling it an 'insurance measure against weakening labor market conditions.' He emphasized the need for monetary policy to remain cautious to prevent excessive easing from triggering a rebound in inflation risks. Musalem noted that about 10% of the current rise in inflation is attributable to tariff impacts, which are expected to gradually fade in the second half of next year. He added that further rate cuts could be possible if the labor market continues to deteriorate but warned that 'room for easing is limited.'
On the same day, Federal Reserve Governor Waller, in an interview, also expressed support for continued interest rate cuts but stressed that 'caution should be exercised.' He pointed out that the US labor market might be losing jobs while Gross Domestic Product (GDP) remains robust, signaling a divergence in economic indicators. 'Either the labor market will recover to match GDP growth, or economic expansion will moderate to align with slower job growth,' Waller said. 'Either scenario will influence the direction of monetary policy.'
At the September policy meeting, the Federal Reserve cut the benchmark interest rate by 25 basis points for the first time since December 2024 and hinted at two more cuts this year via the dot plot. Waller expressed satisfaction with this pace but opposed more aggressive adjustments. His newly appointed colleague, Governor Milan, appointed by President Trump, advocated for a one-time 50-basis-point rate cut and hopes for cumulative cuts totaling 1.25 percentage points by year-end.
It is reported that Waller is currently one of five candidates for the position of Federal Reserve Chair. US Treasury Secretary Bessent recently held an extended meeting with Waller and will submit the final list of candidates to Trump after completing the second round of interviews. In selecting candidates, Bessent emphasized the importance of maintaining an open-minded approach to monetary policy and possessing extensive expertise in economics, regulation, and institutional management.
As of the latest data, according to CME's 'FedWatch': The probability of the Federal Reserve maintaining interest rates unchanged in October is 1.7%, while the likelihood of a 25-basis-point cut stands at 98.3%. For December, the probability of keeping rates unchanged is 0.1%, with an 8.1% chance of cumulative 25-basis-point cuts and a 91.7% probability of cumulative 50-basis-point cuts.
Editor/Rocky