Stocks End Sharply Lower as U.S.-China Trade Tensions Resume; Major Indexes Post Weekly Losses

Noteworthy S&P 500 Movers on Friday

8 hr 38 min ago

Decliners

• Chip design software firm Synopsys (SNPS) and Teradyne (TER) each dropped about 9%, while Advanced Micro Devices (AMD) and Microchip Technology (MCHP) tumbled roughly 8% as semiconductor-related stocks were among the S&P 500’s biggest decliners. AI favorite Nvidia (NVDA) finished nearly 5% lower after climbing to a fresh intraday record ahead of Trump’s comments.
• Shares of Tesla (TSLA) and Amazon (AMZN) also dropped about 5% amid broad-based declines, with the tech sector taking the heaviest hit. Consumer staples marked the only sector in the S&P 500 to post gains.

Advancers

• PepsiCo (PEP) shares rose nearly 4% to secure the S&P 500’s top performance on Friday. The stock added to its jump in the prior session after the snack and soft drink giant posted better-than-expected quarterly results and named a new chief financial officer. Growth in international markets helped drive Pepsi’s strong performance, despite declining volumes in North America.
• Shares of auto parts retailers clawed back some of the steep losses they suffered over the past week following a Chapter 11 bankruptcy by supplier First Brands. The collapse of the company behind a number of major brands for products like filters, brakes, and wipers could disrupt supply and pricing for the parts sellers. AutoZone (AZO) shares recovered 2.7% Friday after the company authorized the repurchase of an additional $1.5 billion worth in its stock. O’Reilly Automotive (ORLY) stock was up 2.4%.

–Michael Bromberg

Major Stock Indexes Finish With Weekly Losses After Dropping Friday

10 hr 32 min ago

Through the first four trading days of the week, both the S&P 500 and Nasdaq were on pace to post weekly gains. That did not occur.

The indexes joined the Dow Jones Industrial Average in ending lower for the week after all three tumbled Friday.

For the week, the Dow finished down 2.7%, the S&P 500 2.4%, and the Nasdaq 2.5%. It was the second time in three weeks all three had finished lower over the five sessions.

The Nasdaq has the highest year-to-date returns of the trio, up more than 15%, while the S&P 500 and Dow are nearly 12% and more than 7% higher, respectively.

Prediction Market Kalshi’s Valuation Has More Than Doubled to $5B in Just 3 Months. Here’s Why.

11 hr 33 min ago

Prediction markets are booming, and so are their valuations.

Kalshi in August closed a funding round that valued the prediction market platform at $5 billion, more than double the $2 billion valuation it disclosed in June. According to a spokesperson, Kalshi raised $300 million from backers including Sequoia Capital, Andreessen Horowitz, and Coinbase Ventures. News of the funding round was previously reported by The New York Times.

Prediction markets have taken off this year as they’ve expanded their offerings and entered new jurisdictions. According to a spokesperson, Kalshi’s trading volume exceeded $1 billion in the week ending October 6, a huge jump from the $300 million reportedly booked last year. The company’s share of global prediction market volume has grown from 3% a year ago to more than 60% in September, according to data provider Dune.

Kalshi, which launched exclusively in the U.S. in 2021, announced this week that it is expanding to more than 140 countries. And chief rival Polymarket last month received the go-ahead from federal regulators to relaunch in the U.S., according to CEO Shayne Coplan.

Sports betting has been a major driver of growth. Kalshi in January began offering contracts tied to major sporting events like the Super Bowl, and last month expanded its sports-related offerings with pre-made and custom parlays. Kalshi had its highest-volume day ever on September 14, the second Sunday of the 2025 NFL season, “highlighting the platform’s recent growth in the sports category,” according to the company.

Read the full article here.

–Colin Laidley

Consumers Aren’t Worried About the Shutdown. But They Are Worried About Jobs.

11 hr 59 min ago

The government may be shut down, but consumers hardly noticed in early October.

The Michigan Consumer Sentiment Index came in at 55.0 in the preliminary October reading for the closely followed survey, a tick lower than the September final reading of 55.1.

 Still, it’s the lowest sentiment reading since May, when consumers reacted to President Donald Trump’s tariff announcements. Economists surveyed by The Wall Street Journal and Dow Jones Newswires expected a steeper drop in sentiment to 53.5.

The survey, conducted through Monday, Oct. 6, showed little change from the prior month’s results, even amid the start of a federal government shutdown. The survey indicated that consumer perceptions of current economic conditions improved slightly in October, while expectations for future economic conditions declined somewhat. 

“Overall, consumers perceive very few changes in the outlook for the economy from last month,” said survey director Joanne Hsu. “Interviews reveal little evidence that the ongoing federal government shutdown has moved consumers’ views of the economy thus far.”

Read the full article here.

–Terry Lane

Trump Threatens ‘Massive Increase of Tariffs’ on China

12 hr 12 min ago

The U.S.-China trade wars flared up again Friday when President Donald Trump threatened to increase import taxes as part of a dispute over critical “rare earth” minerals that China exports.

In a lengthy social media post on Friday, Trump questioned the need for an upcoming meeting with Chinese leader Xi Jinping and threatened new tariffs in retaliation for China’s move on Thursday to restrict its exports of rare earth minerals, which are critical to high-tech manufacturing in the U.S. and abroad.

The dispute threatened to derail trade negotiations between the world’s two largest economies and reignite a trade war that reached a peak earlier this year when the two nations imposed triple-digit tariffs on one another’s exports. In May, the two sides agreed to a shaky truce. The two countries lowered their tariffs somewhat while attempting to make a more permanent deal, backing off from levels reached earlier in the year that amounted to a near embargo.

“Dependent on what China says about the hostile ‘order’ that they have just put out, I will be forced, as President of the United States of America, to financially counter their move,” Trump wrote. “One of the Policies that we are calculating at this moment is a massive increase of Tariffs on Chinese products coming into the United States of America.”

China has been able to use its control of the rare earth market as leverage against the U.S. in the trade dispute. Rare earths such as Neodymium, which is used to make magnets, are crucial for electronics, automobiles, weapons, and other industries. On Thursday, China announced sweeping new restrictions on rare earth exports ahead of a possible meeting between Trump and his Chinese counterpart in South Korea.

The trajectory of U.S.-China trade relations has been volatile since Trump took office for the second time in January. In recent months, the trade wars appeared to settle down, with Trump touting a deal on the ownership of TikTok. But in the latest post, Trump used harsh language, describing China’s gaining control over the rare earth market as “a rather sinister and hostile move.”

–Diccon Hyatt

Why Levi Strauss Stock Is Tumbling Friday Despite Solid Earnings

12 hr 32 min ago

Levi Strauss (LEVI) shares dropped as the jeans maker gave a muted current-quarter outlook because of the impact of tariffs.

CFO Harmit Singh told analysts on the company’s third-quarter earnings call that management expects a 100 basis point drop in fourth-quarter gross margin because of the new duties and the effect of a 53rd week in the year, according to a transcript provided by AlphaSense. In addition, the firm sees adjusted earnings per share (EPS) of $0.36 to $0.38, while analysts surveyed by Visible Alpha were anticipating $0.41.

The guidance offset a strong third-quarter financial report. Levi Strauss posted adjusted EPS of $0.34, with revenue increasing 7% to $1.54 billion. Both exceeded estimates. 

Sales were up 6% to $806 million in the Americas, 5% to $426 million in Europe, and 12% to $278 million in Asia. Beyond Yoga sales added 2% to $33 million.

The company also boosted its full-year forecasts for adjusted EPS to a range of $1.27 to $1.32 from $1.25 to $1.30, and revenue growth to 3% from 1% to 2%.

Shares of Levi Strauss were down 12% in recent trading but have added 25% year-to-date.

–Bill McColl

Watch These Nvidia Price Levels After AI Favorite’s Recent Record-Setting Streak

13 hr 5 min ago

Nvidia (NVDA) shares hovered near their all-time highs Friday after setting a string of records earlier this week on optimism about the artificial intelligence trade.

The AI chipmaker’s stock climbed nearly 2% Friday to a fresh intraday high before pulling back in recent trading, after setting closing records Thursday and Wednesday. CEO Jensen Huang told CNBC Wednesday that AI demand has grown “substantially” in the last six months, and that he believes the AI boom is still in its early stages, leaving further room for growth. Sentiment for the stock also got a boost as Nvidia supplier TSMC (TSM) on Thursday posted a 30% year-over-year jump in third-quarter revenue.

Nvidia shares have surged nearly 40% since the start of the year, powering broader stock market gains and sending the company’s market value above $4 trillion, making it the first company in the world to achieve that feat. The stock continues to attract buying interest as its big tech customers spend billions to ramp up their AI capacity.

Nvidia shares broke out from a flag pattern on Thursday, signaling potential upside above the stock’s recent trading range.

Meanwhile, the relative strength index confirms bullish momentum. The indicator also sits well below its June and July peaks, suggesting the stock has further room to trend upwards. Looking ahead, investors could watch for rising trading volume, which would point to institutional accumulation of the chipmaker’s stock.

Read the full technical analysis piece here.

–Timothy Smith

Qualcomm Stock Slides on News of Antitrust Probe by Chinese Regulators

13 hr 54 min ago

Qualcomm (QCOM) shares declined Friday following news Chinese regulators have opened an antitrust investigation of the chipmaker’s June purchase of Israel-based car safety semiconductor manufacturer Autotalks.

China’s State Administration for Market Regulation wrote in a statement seen by news organizations that it would be looking into whether Qualcomm unlawfully withheld certain details about the acquisition.

Bloomberg reported that Beijing was targeting Qualcomm as part of an effort to gain leverage ahead of trade talks between President Donald Trump and Chinese President Xi Jinping expected at the end of the month. It noted China has already announced an antitrust probe of Nvidia (NVDA), and has slapped curbs on exports of rare earth and other key minerals to the U.S., as well as limiting imports of soybeans from American farmers.

Qualcomm did not respond to Investopedia‘s request for comment before publication.

Shares of the company have gained 3% since the start of the year, trailing the performance of tech stocks that have surged amid booming demand for AI.

–Bill McColl

Here’s Why Applied Digital Stock Is Soaring Friday

14 hr 50 min ago

Shares of Applied Digital (APLD) soared 20% Friday after the artificial intelligence (AI) data center service provider posted better-than-expected sales on rising demand.

Applied Digital reported its first-quarter fiscal 2026 revenue skyrocketed 84% to $64.2 million, $9.6 million more than analysts surveyed by Visible Alpha were looking for. Adjusted loss of $0.03 per share was in line with estimates.

Applied Digital also finalized a new lease contract with CoreWeave (CRWV) to provide the cloud computing company with an additional 150 megawatts at its Polaris Forge 1 campus in Ellendale, North Dakota. With the new CoreWeave deal, Applied Digital has about $11 billion in prospective lease revenue over a 15-year period, it said. It also sees the potential for Polaris Forge 1 to continue expanding, with available power expected to exceed 1 gigawatt between 2028 and 2030.

“With hyperscalers expected to invest approximately $350 billion into AI deployment this year, we believe we are in a prime position to serve as the modern-day picks and shovels of the intelligence era,” CEO Wes Cummins said.

Applied Digital shares have nearly quintupled year-to-date. 

–Bill McColl

Polymarket Wagerers See Little Likelihood of Imminent End to Government Shutdown

16 hr 32 min ago

The U.S. government shutdown is highly unlikely to end in the next five days, according to Polymarket event-contract wagerers.

Per Polymarket, there is just a 6% chance that Congress will pass a funding bill by Oct. 15.

Things improved substantially from there, however, with a 65% likelihood of a funding bill passing by Oct. 31, and a 96% chance by Nov. 30.

Stellantis Stock Rises on Q3 Shipment Estimates

17 hr 49 min ago

Stellantis released preliminary third-quarter shipment figures Friday. Investors evidently liked them.

Shares of Stellantis (STLA) pared earlier gains but advanced 1% soon before the opening bell after the Chrysler and Jeep parent estimated 1.3 million units were shipped in Q3, up 13% year-over-year.

The company said the estimated gains in shipments—”the volume of vehicles delivered to dealers, distributors, or directly from the Company to retail and fleet customers, which drives revenue recognition”—was mostly driven by a 35% jump in North America.

The “significant improvement” in North America “primarily reflects the benefits of normalized inventory dynamics, in comparison to the prior year’s inventory reduction initiative, which temporarily reduced production,” Stellantis added.

Stellantis shares entered Friday down about 19% this year.

Stock Futures Point Higher to End Week

19 hr 1 min ago

Futures tied to the Dow Jones Industrial Average rose than 0.1%.

S&P 500 futures were up 0.1% as well.

Nasdaq 100 futures also were up 0.1%.