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US stocks slide as trade tensions with China escalate

Business

US stocks slid on Tuesday, with the Dow down 504 points (1.1%), and the S&P 500 and Nasdaq losing even more.
The main culprit? Growing trade drama between the US and China, which sent investor anxiety climbing—reflected in a jump of the Cboe Volatility Index above 22.

Trade tensions with China hit US companies hard

China just hit US subsidiaries of South Korea's Hanwha Ocean with sanctions and tightened exports of rare earth minerals—key ingredients for making tech like chips and EVs.
Tech stocks felt it hard: NVIDIA fell 3.9%, Tesla dropped 3.8%, and Oracle slipped 4.3% even after solid earnings.

Other factors at play

There is an ongoing US government shutdown, which could affect 750,000 federal workers and shrink GDP by 0.8% points.
Even big banks like JPMorgan and Goldman Sachs beat profit forecasts but still saw shares fall as worries over global risks took center stage.
Investors are playing it safe, moving money into government bonds while global markets stay shaky amid all this uncertainty.