Trump's tariff nuclear bomb! US stocks fell 900 points, the Dow and Nasdaq crashed, and the Taiwan stock market is likely to collapse by 1600 points.

Trump announced a 100% tariff on China in retaliation for rare earth controls, causing a big dump in US stocks that triggered Black Friday, with the Dow plummeting 878 points down 1.9%, Nasdaq crashing 3.56%, and the Philadelphia Semiconductor Index plunging 6.32%. The VIX fear index surged, with the Taiwan Futures evening session down 5.5%, and institutions warning that the Taiwan stock market could collapse 1600 points on Monday, with the Trump-Xi meeting at the APEC summit being the only turning point.

Trump tariffs trigger big dump disaster scene in the US stock market

The U.S. President Trump's tariff policy was announced without warning, imposing a 100% new tariff on Chinese imports starting November 1, and implementing export restrictions on all critical software. This wave of big dump in the U.S. stock market has caused severe turmoil in the global financial markets.

· The four major U.S. stock indices have all collapsed

Dow Jones Industrial Average: big dump 878 points (fall 1.90%), closing at 45,479 points, approaching the seasonal support. The big dump in the Dow Jones index reflects investors' panic over Trump tariffs.

Nasdaq Index: Plummeted 820 points (fall of 3.56%), closing at 22,204 points, near the quarterly line. Tech stocks have become the heavy casualties of the big dump in the U.S. stock market.

Philadelphia Semiconductor Index (SOX): big dump of 432 points (fall of 6.32%), closing at 6,407 points, directly dropping to the monthly line. The big dump in the SOX index reflects the semiconductor industry's sensitivity to Trump's tariffs.

TSMC ADR: plunged 6.41% (fall 19 USD) to 280 USD, testing the monthly support line. The big dump of TSMC ADR in the US stock market indicates that the Taiwan stock market will face significant pressure on Monday.

Rare Earth Concept Stocks Ignite Sino-U.S. Tariff War

China announced on the 9th that it will implement export controls on rare earths, aiming to restrict exports to overseas users in defense and semiconductor sectors, while also including key materials such as lithium batteries and artificial graphite. Given that China holds over 90% of the world's rare earth processing capacity, it seems to be a show of strength before the Xi-Trump meeting, raising its bargaining chips.

Trump's tariff retaliation measures were quickly announced on his own social media platform “Truth Social,” stating that in light of China's “extremely aggressive” export controls on rare earth minerals, a 100% tariff will be imposed in retaliation starting from November 1. He also hinted that the “Trump-Xi meeting” expected to take place at the APEC summit at the end of the month may fall through.

The geopolitical struggle over rare earth concept stocks directly triggered a big dump in the US stock market. Trump's tough stance on tariffs targeting rare earths has raised market concerns about the risk of global supply chain disruptions.

Taiwan stock market may crash, warning of a 1600 point drop next week

The U.S. stock market's big dump may also impact the stock markets in other regions when they open next week. Based on the electronic quotes of the Singapore FTSE index, the Taiwan stock market is expected to fall by 1,600 points on Monday (the 13th), triggering panic among investors.

Futures Alert for Taiwan Index: big dump of 5.5%, breaking below the monthly support line. The financial fan page “Investment Addiction” analyzes that based on technical indicators and the extent of the fall, Taiwan stocks are likely to open lower and continue to decline next week, with a conservative estimate of a drop exceeding 1,000 points, and it is even possible that it may fall to 1,500-1,600 points.

Institutional Opinions Exposed: This wave of sell-off is a chain reaction of the leverage effect of funds. If one link has a problem, it will trigger a domino effect, and the market atmosphere may change rapidly.

The “investment addiction” reminder states that when faced with severe market fluctuations, one should not rush to find reasons. “Risk should not be faced only when it arrives, but rather, it should have been prepared for in advance.” When the stock market drops sharply next week, bad news will come pouring in, and investors must remain calm.

VIX Fear Index becomes a key observation indicator

Financial writer Di Xiang analyzed that after Trump's tariffs “sneak attack on the market,” the primary indicator to observe is the VIX volatility index. If it closes below 20, it indicates that short-term panic sentiment can be quickly digested, and next week may actually be an opportunity to buy on dips; however, if it closes above 20, it shows that risk-averse sentiment remains strong, and market volatility may further expand.

Di Xiang suggested that when the stock market reaches a new high, reducing leverage first is not a bad thing. The Futai index night market fell by 5.5%, and in the short term, if the Taiwan stock market falls by 4-5%, it can already drive away many margin retail investors. After the market reduces leverage, it is a great opportunity for other investors.

Trump-Xi meeting becomes the only turning point

Regarding the original plan for a meeting between Trump and Xi at the APEC (Asia-Pacific Economic Cooperation) summit in South Korea at the end of October, Trump once questioned the rationale for the meeting. However, when reporters later asked him if the Trump-Xi meeting was canceled, he stated that he had not canceled it, just that he did not know if it would take place, but Trump also emphasized that he would definitely attend APEC.

If China cancels export controls, will the United States follow suit by lifting Trump tariffs to express goodwill? Trump stated that he would set the effective date for counter-tariffs on November 1, just to see how things unfold next. The Xi-Trump meeting has become the only possible turning point after the big dump in the US stock market.