High volatility in the financial market continued on Monday (October 13, 2025), following a significant drop in the stock index triggered by U.S. President Donald Trump last Friday.
The Nasdaq Index fell over 1,100 points during the trading session on Friday, closing at 24,176, nearing its lowest level in the past month. This sharp decline occurred after Trump expressed anger towards China and announced a 100% increase in import tariffs on all products from China, effective November 1. In addition, Trump implemented restrictions on the export of software and cancelled an upcoming meeting with Chinese President Xi Jinping.
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The rationale behind Trump’s actions stemmed from China imposing export controls on rare earth metals the day before, which are essential for the electronics, electric vehicle, and defense industries. Currently, China supplies about 90% of these rare earth metals, and the export controls undoubtedly complicate access for nations in need, including the United States.
Despite this, over the weekend, U.S. Vice President JD Vance indicated that America is open to negotiations and urged the Chinese government to “choose a rational path.”
Vance’s willingness to negotiate propelled the Nasdaq to soar by 634 points to 24,810 this morning. Meanwhile, the price of gold surged once again, breaking its all-time high at $4,059.69 per troy ounce, slightly surpassing the previous record of $4,059.10 achieved last Wednesday.
Gold is gaining fresh momentum from the risks associated with escalating U.S.-China trade tensions. Should China retaliate against U.S. actions, the trade war between the two nations could reignite, further destabilizing the global economy. This scenario suggests that gold prices may rise even higher.
