Tue Oct 14 12:50:00 UTC 2025: **Summary:**

Stock futures plummeted Tuesday, reversing Monday’s gains, driven by renewed trade tensions with China and a downturn in AI-related stocks. China sanctioned several U.S. subsidiaries of South Korean company Hanwha Ocean, citing security concerns. This move, along with earlier threats of tariffs from the U.S., reignited fears of a trade war. While some major companies like JPMorgan Chase, Goldman Sachs, Citigroup, Johnson & Johnson, and Wells Fargo reported strong earnings, concerns about the economy and government shutdowns weighed on investor sentiment.

**News Article:**

**Stocks Plunge as China Trade Fears Roar Back**

**NEW YORK** – Stock futures nosedived Tuesday, erasing the positive momentum from Monday’s surge, as renewed trade tensions with China sent shivers through the market. Dow Jones Industrial Average futures slumped 439 points (0.9%), while S&P 500 futures fell 1% and Nasdaq-100 futures dropped 1.3%.

The sell-off was fueled by China’s decision to sanction five U.S. subsidiaries of South Korean company Hanwha Ocean, a move seen as retaliation for U.S. probes into Chinese shipping. The move is intended to strengthen China’s security, according to the Chinese government. Treasury secretary Scott Bessent called the act a sign of China’s weakness, signaling they may want to pull the rest of the world down with them. This action followed President Trump’s recent threat of additional tariffs on Chinese imports, escalating concerns over a potential trade war.

AI-driven stocks, which had been leading the recent bull market, were among the hardest hit. Nvidia shed over 1%, while Tesla and Oracle saw declines of 2.2% and 1.7%, respectively.

Despite the market slump, several major financial institutions reported strong third-quarter earnings. JPMorgan Chase, Goldman Sachs, Citigroup, Johnson & Johnson and Wells Fargo all exceeded analysts’ expectations, driven by robust trading revenues and investment banking activity.

Meanwhile, General Motors signaled a hit to its third-quarter profits due to headwinds in the electric vehicle (EV) market, compounded by the Trump administration’s rollback of EV tax credits.

“Trade policy remains a key driver for U.S. financial markets this year, and last week saw a sharp re-escalation in tensions between the U.S. and China,” noted Ulrike Hoffmann-Burchardi, global head of equities at UBS Global Wealth Management. “With hardened positions on both sides, we expect increased equity market volatility into the end of the month.”

Adding to the uncertainty, Citigroup economists predict that a government shutdown could last into November.

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