Wall Street faced turbulence this week, with the S&P 500 recording its worst single-day drop since April 10, primarily triggered by President Donald Trump’s new trade threats against China. The index plummeted 2.71% on Friday, leading to a weekly decline of 2.43%. Similarly, the Nasdaq experienced its most significant downturn since April, decreasing by 3.56% in one day and 2.53% over the week.
After the markets closed on Friday, President Trump announced additional tariffs of 100% on Chinese imports, stating that this would be applied “over and above any tariff that they are currently paying.” The tariffs are set to commence on November 1, linking them to new export controls China enacted on rare earths, critical components in technologies from smartphones to military hardware. Compounding market uncertainty, the Trump administration began laying off federal workers on the 10th day of the government shutdown.
In a contrasting narrative, Nvidia had a volatile yet impactful week. The semiconductor company saw its shares dip following a significant chip-buying agreement between Advanced Micro Devices (AMD) and OpenAI, which caused AMD’s stock to soar nearly 24%. However, financial experts, including Jim Cramer, reassured investors that Nvidia’s market leadership in artificial intelligence (AI) chips remains intact despite AMD’s potential advancements. Nvidia’s CEO, Jensen Huang, during an interview, emphasized the importance of the U.S. taking the lead in generative AI technology to ensure national security and economic growth.
Throughout the week, Nvidia’s stock fluctuated, closing down around 2.4% from its position on October 3. The company showcased resilience, rebounding to an extent mid-week, but Friday’s markets tumble impacted its performance.
In terms of portfolio strategies, key movements included the purchase of additional shares in GE Vernova, which is experiencing growth in the natural gas sector and offers a robust outlook amidst rising energy demands from AI infrastructures. The investment club also reduced its Salesforce holdings, capitalizing on short-term gains following its stock’s rise linked to OpenAI’s partnership with Slack.
Meanwhile, Nike’s stock took a notable downturn, declining over 9% this week despite positive feedback from an interview with CEO Elliott Hill, who discussed the brand’s strategic pivot back to its sports roots, particularly in the crucial Chinese market. Hill’s comments indicated a long-term commitment to reviving the brand through enhanced sports-focused retail experiences.
Overall, the week encapsulated a mix of volatility influenced by geopolitical tensions and corporate strategies, as major players evaluated their positions ahead of upcoming trading opportunities.
