Key Takeaways:
- Global markets slumped as Trump’s 100% China tariff plan and the ongoing U.S. government shutdown deepened economic uncertainty.
- Japan’s ruling coalition collapsed, the Kremlin warned of “dramatic” escalation in Ukraine, and Gaza’s fragile ceasefire held ahead of Trump’s visit.
- The Fed struck a cautious tone as inflation stayed elevated, while gold hovered near record highs and oil tumbled on weaker demand signals.
- Bitcoin rebounded to $115K after a record $19.5 billion liquidation wiped out leveraged positions across crypto markets.
Geopolitics & Market Sentiment
On October 13, 2025, markets recorded steep losses as renewed U.S.–China tariff escalation, a prolonged government shutdown, and record-breaking crypto liquidations rattled investor sentiment worldwide.
On the diplomatic front, tensions surged after President Donald Trump announced a 100% tariff on Chinese exports and sweeping export controls on “critical software,” prompting Beijing to threaten retaliatory measures. Trump said there was “no reason” to meet with President Xi Jinping at the planned South Korea summit, reigniting fears of a prolonged trade conflict.
In the Middle East, a ceasefire between Israel and Gaza held for a third day ahead of the scheduled release of hostages and President Trump’s visit to address Israel’s parliament.
Along the Pakistan–Afghanistan border, fierce clashes left dozens dead and wounded. Meanwhile, Moscow warned that possible U.S. supplies of Tomahawk missiles to Ukraine risks a “dramatic” escalation.
In Asia, Japan’s ruling coalition split following internal disputes, briefly strengthening the yen and unsettling local bond markets, while in Europe, the UK prepared new fiscal tightening measures as Chancellor Rachel Reeves sought to expand the nation’s budget buffer against rising borrowing costs.
On the economic front, the ongoing U.S. government shutdown continued to weigh on data availability, though the Bureau of Labor Statistics confirmed it will release September CPI on October 24 to meet Social Security adjustment deadlines.
Investors turned to major bank earnings for clues on credit conditions and consumer strength, with expectations for a near 10% gain in S&P 500 Q3 earnings.
Federal Reserve officials struck a cautious tone, as St. Louis Fed President Alberto Musalem noted scope for limited insurance cuts but warned that inflation remains “materially” above target.
Bond yields steadied, and the dollar softened, while gold hovered around $4,000 an ounce after briefly topping the milestone on Trump’s tariff comments. Meanwhile, oil fell sharply as demand fears intensified and Russia extended its domestic fuel subsidy scheme through May.
In Crypto, digital markets endured their most severe wipeout in history as over $19.5 billion in leveraged positions were liquidated within 24 hours, surpassing previous records from the FTX collapse and the 2020 crash.
Ethereum and Solana rebounded strongly, climbing over 10% as traders re-entered after the steep correction, while Binance Coin surged 15% on fresh capital inflows.
Analysts described the event as a “forced reset” that flushed excess leverage from the system but left sentiment fragile across digital assets.
Price movements
Global Indices
- S&P 500 Index (SPX): 6,552.52 (−2.71%)
- Dow Jones Industrial Average (DJI): 45,479.60 (−1.90%)
- Nasdaq Composite Index (IXIC): 22,204.43 (−3.56%)
- Nikkei 225 Futures (NK2251!): 45,200.0 (−5.08%)
- FTSE 100 (UKX): 9,382.0 (−1.23%)
Cryptocurrencies
- Bitcoin (BTCUSD): 115,172 (+3.98%)
- Ethereum (ETHUSDT): 4,145.93 (+10.65%)
- Binance Coin (BNBUSDT): 1,307.74 (+15.23%)
- Solana (SOLUSDT): 197.43 (+11.15%)
- BTC Dominance (BTC.D): 59.42% (−1.07%)
Major Stocks
- Nvidia (NVDA): 183.16 (−4.89%)
- Tesla (TSLA): 413.49 (−5.06%)
- Microsoft (MSFT): 510.96 (−2.19%)
- Meta Platforms (META): 705.30 (−3.85%)
- Apple (AAPL): 245.27 (−3.45%)
- Amazon (AMZN): 216.37 (−4.99%)
Commodities
- Silver (XAGUSD): 50.126 (+1.87%)
- Gold (XAUUSD): 4,017.845 (+1.09%)
- WTI Crude Oil (USOIL): 58.25 (−5.30%)
- Brent Crude Oil (BRENT3!): 68.166 (−3.68%)
Forex
- U.S. Dollar Index (DXY): 98.487 (−0.55%)
- EUR/USD: 1.1621 (+0.49%)
- GBP/USD: 1.3349 (+0.41%)
- USD/JPY: 151.128 (−1.25%)
Read More: Future of U.S. Crypto Policy Hangs in the Balance After Senate Clash; What’s happening?
