One Trump post wiped out $2 trillion overnight! Here’s why markets and crypto plunged like never before.
Key Highlights
* A single Trump post wiped out $2 trillion in global markets.
* Cryptocurrencies faced their largest single-day drop ever.
* S&P 500 fell 2.71%, Dow Jones by 900 points, Nasdaq by 820 points.
* China plans to halt rare earth exports starting in December.
* Investor attention is on potential Chinese retaliation and US economic impact.
Trump vs China: One Post That Shook Wall Street and Crypto
A single social media post by former US President Donald Trump caused a massive sell-off in both cryptocurrency and stock markets last weekend. Cryptocurrencies experienced their largest single-day drop in history, while approximately $2 trillion (around 1.84 crore rupees) vanished from global stock markets in just one day.
Trump’s post on Truth Social, published at 10:57 a.m. ET, announced that a 100% additional tariff would be imposed on China, along with restrictions on software exports. He stated that all imports from China to the US would face a 100% tariff on top of existing tariffs starting November 1.
China, which controls roughly 70% of the world’s rare earth minerals, responded by planning to halt exports starting in December. This news, combined with Trump’s announcement, caused US markets to tumble.
The S&P 500, which had been poised for another record, dropped 2.71%. The Dow Jones fell by 900 points (1.9%), and the Nasdaq fell by 820 points (3.5%), marking the largest single-day drop since April. European and Asian markets mirrored the decline, while Indian markets were spared initially as Trump’s post came after the local closing bell. Investors worldwide are now watching closely to see how markets react when they reopen.
Why Are Stocks Falling?
1. Trade tensions flare up again
The US-China trade conflict is heating up. As the world’s two largest economies, any clash between them sends shockwaves globally, leaving investors nervous.
2. The massive tariff increase
The US already charges around 40% on Chinese goods. Trump’s announcement of an additional 100% tariff could worsen trade relations and increase market uncertainty.
China has not made any official statement yet. Analysts expect strong counteractions. These could include tariffs on US goods. Such moves may further pressure global markets.
Trump had planned to meet Chinese President Xi Jinping at the Asia-Pacific Economic Cooperation summit in South Korea this month. He also hinted at visiting China soon. Later, he said the meeting no longer mattered. This added confusion for investors.
China Locks Up Rare Earths, Trump Hits Back
The main concern now is how China will respond. When Trump raised tariffs in April, China retaliated. Global markets suffered at that time. A similar response could happen again. This could put more pressure on the world economy.
The US still depends heavily on China for many products. These include electronics, cars, minerals, and solar materials. If tariffs rise too high, US companies, traders, and consumers could face serious problems.
