CNBC Daily Open: Trump can move billions with a few words

Artificial quality (in different words, "OpenAI and the companies successful its ecosystem") has been turbocharging banal markets since ChatGPT was released successful 2022.

The clearest illustration of the sustained rally we've been enjoying: In caller weeks, the S&P 500 fundamentally deed a grounds adjacent each clip the index rises — adjacent if it's a miniscule 0.05% tick upwards.

That's not to accidental investors aren't disquieted astir a imaginable AI bubble forming. If you squint a bit, Nvidia's immense concern woody with OpenAI tin look similar one manus passing a wad of currency to another, portion OpenAI's ambitious Stargate project, contempt lone having 1 "star" successful its name, mightiness request something similar the vigor of 5 to powerfulness it.

None of that, however, has halted stocks' long-run march upward. Until 1 antheral said a fewer words.

On Friday, U.S. President Donald Trump, successful effect to China tightening exports of uncommon earths, introduced caller 100% tariffs connected the Asian giant, connected apical of existing rates. "Also connected November 1st, we volition enforce Export Controls connected immoderate and each captious software," Trump added.

That azygous measurement wiped retired astir $800 cardinal from large tech firms, with the S&P 500 and Nasdaq Composite falling the astir since April, when, well, we each cognize what happened then.

One of the fewer radical that, with a azygous utterance, could determination billions is Taylor Swift. Trump is another. And "the remainder is History," arsenic Trump wrote.

Trump slaps caller tariffs connected China. The president announced tariffs of 100% connected imports from China, which volition beryllium applied connected apical of already existing ones, starting Nov. 1. However, Trump said Sunday that "all volition beryllium fine" with China.

China defends tighter uncommon earths restrictions... The state connected Thursday tightened exports of the metals, which are captious successful semiconductors and subject equipment. Beijing defended the measures connected Sunday and said they "are not afraid" of a commercialized warfare with the U.S.

.... and introduces charges connected U.S. ships. The country's Ministry of Transport said Friday that starting Oct. 14, U.S. ships docking astatine Chinese ports volition look a caller fee — a nonstop response to Washington imposing charges connected Chinese vessels arriving astatine U.S. ports, acceptable to instrumentality effect the aforesaid day.

Stocks deed by commercialized warfare reigniting. Major U.S. indexes slumped Friday, with tech behemoths losing $770 cardinal successful marketplace capitalization. Europe's determination Stoxx 600 mislaid 1.3%, with most large bourses besides falling. On Sunday nighttime stateside, U.S. futures rebound.

[PRO] China volition stay person successful robotics. That's according to Morgan Stanley, which wrote successful a Sept. 30 study — shared with the media past week — that there's "potential successful Chinese manufacturing" to grow rapidly successful the adjacent fewer years.