Gold Soars, Markets Suffer 13/10/2025

HOT stories for today

US market wrap:

• The market plunged on Friday, marking the first significant negative move in the S&P 500 in weeks, and closed with an almost 3% drop. Stocks opened higher in the morning, but a single lengthy tweet from Trump sent markets tumbling after the president threatened sweeping new tariffs on China and called off plans for a meeting with Chinese President Xi later this month. According to one source, the Federal Reserve also initiated major layoffs, dismissing 200,000 federal employees as part of the ongoing government shutdown. In the meantime, Gold shines for new highs.
• John Belton Gabelli, Portfolio Manager of the Funds, noted that the market had been anticipating a pullback after rallying roughly 40% since Liberation Day. However, over the weekend, the President reassured investors with a comment that “everything will be fine with China,” and so far, futures suggest that much of Friday’s steep losses have been recovered. Although today is Columbus Day, the markets remain open.

Crypto Wipeout: $500M Gone

• Crypto markets were jolted Friday after former U.S. President Donald Trump threatened “massive” new tariffs on China, sparking nearly $500 million in leveraged liquidations as trade-war fears resurfaced. Data from CoinGlass shows that approximately $490 million in crypto positions were wiped out within an hour, with long traders absorbing roughly $450 million of the loss, compared to $40 million from shorts.
• Among primary tokens, Ethereum (ETH) dropped over 5%, and Solana (SOL) fell about 4%. The sentiment toward Ethereum remained neutral, while Solana maintained a bullish edge as traders sought a rebound.

Stocks on the move:

• China Stocks (BABA, BIDU, PDD): U.S.-listed Chinese equities tumbled broadly after Trump’s latest threat against Beijing. Alibaba (BABA) and Baidu (BIDU) each sank more than 6%, while PDD Holdings (PDD) slid about 4%.
• Rocket Lab (RKLB): Shares of the space-launch company climbed over 4% after it secured multiple launch contracts with the Japan Aerospace Exploration Agency (JAXA). The stock is now up more than 23% for the week.
• Protagonist Therapeutics (PTGX): The biotech stock soared 34% following a Wall Street Journal report that Johnson & Johnson (JNJ) is in talks to acquire the company.
• Applied Digital (APLD):  Shares spiked 19% after the data-center developer reported an 84% year-over-year revenue increase in its fiscal first quarter.

Watchlist: APLD, IREN, PDD, BABA, COIN, NVDA, AAPL, FAST

Today’s action

• Asia-Pacific stocks fell Monday after the U.S. and China tightened trade restrictions and exchanged fresh accusations, reigniting tensions between the world’s two biggest economies. Hong Kong’s Hang Seng lost 3.41%, and China’s CSI 300 slipped 1.76%. Beijing said it was “not afraid of” a trade war after former President Donald Trump vowed new punitive tariffs on Chinese goods. Japan’s markets were closed for a holiday.
• In the U.S., stock futures rebounded Sunday night after Trump said relations with China “will all be fine.” Dow futures rose 0.8%, while S&P 500 and Nasdaq-100 futures climbed 1% and 1.2%, respectively. Meanwhile, the government shutdown continues as a key payroll deadline nears. Earnings season begins this week with results from Citigroup (C), Goldman Sachs (GS), Wells Fargo (WFC), JPMorgan (JPM), Bank of America (BAC), and Morgan Stanley (MS) due Tuesday and Wednesday.

Bitcoin
 

• The total crypto market cap bounced back above $4 trillion on Sunday, as Ether (ETH), BNB (BNB), and Dogecoin (DOGE) rallied 10.5%, 13.6%, and 12.5% respectively, recovering from Friday’s $500 billion wipeout.
• Solana (SOL) at $193.94, Cardano (ADA) at $0.70, and Chainlink (LINK) at $19.18 also gained over 10%, CoinGecko data shows. Synthetix (SNX) briefly doubled, setting a new 2025 high, while Mantle (MNT) and Bittensor (TAO) jumped more than 30%.
  Watchlist: Bitcoin: 98 000-126 500, Ethereum: 4000-4980, Solana: 180-240
   

Forex

• The Japanese Yen (JPY) remained under pressure on Monday as risk appetite improved and domestic political uncertainty eroded demand for safe-haven assets. Diverging BoJ–Fed policy paths also limited the downside of USD/JPY.
• The Euro (EUR) held firm above 1.1600, aided by a weaker U.S. Dollar (USD) amid renewed U.S.–China trade tensions and the government shutdown. Trump’s plan for 100% tariffs on Chinese goods weighed on the dollar, while easing political strains in France supported the Euro.
  Watchlist: EUR/USD: 1.0700-1.1880, USD/JPY: 148-153

Basic Materials

• WTI crude rose 2.5% to around $59.50, recovering from Friday’s 5% drop, after Trump said China’s economy “will be fine” and that he aims to “help China, not hurt it.” Oil had earlier weakened as supply concerns eased following Trump’s declaration that the Gaza conflict was over.
• Gold (XAU/USD) hit a new all-time high as U.S.–China trade tensions and Fed rate-cut expectations lifted safe-haven demand. A weaker dollar added support, keeping the bias bullish despite overbought conditions.
  Watchlist: GOLD: 2600-4080, US Oil: 55.60-75.80

Key Economic Events Today:

EST time

Happy Columbus Day!


Earnings

BMO (Before Market Open):

FAST                 Fastenal Company



The TEFS Analyst team wishes you a successful day!