Global markets steadied on Monday after a sharp selloff late last week, when China unveiled sweeping controls on rare earth exports, prompting an immediate 100% tariff response from the U.S. The escalating trade tensions sparked a rout in technology shares, with chipmakers leading declines. The S&P 500 slumped 2.7% and the Nasdaq 100 dropped 3.6% on Friday.
In geopolitical developments, Hamas released the final group of hostages, marking an official end to the conflict with Israel. Meanwhile, in Europe, tensions with Beijing deepened as the Netherlands seized control of Chinese-owned chipmaker Nexperia BV, citing national security concerns — a move that is expected to draw a forceful retaliation from China.
Cryptocurrencies also suffered a historic plunge, erasing billions in market value and shaking retail investors who had piled into the sector earlier in the year.
In France, President Emmanuel Macron reappointed Prime Minister Sébastien Lecornu, who swiftly announced a new cabinet in an effort to restore stability after months of political upheaval.
Commodities saw renewed volatility: oil tumbled more than 4% on Friday amid speculation of regime change in Venezuela, before rebounding 2% today on improved sentiment. China’s exports surprised to the upside, rising 8.3% in September to $328 billion, though shipments to the U.S. fell 27%.
European stocks rose about 0.5%, while U.S. futures pointed to a partial recovery of last week’s losses after Donald Trump signaled in a social media post that he may be open to negotiations with China.
Meanwhile, gold continued its relentless climb, gaining 2.35% to $4,094 an ounce, cementing its reputation as the only asset rising across all market conditions.