U.S.-China trade escalation
China announced countermeasures to U.S. Section 301 restrictions on shipping industries. Trump then threatened financial countermeasures and announced an additional 100% tariff on Chinese goods starting November 1.
Oct 10, 2025 · QQQ/SPY Market Review · 30 headlines
Tariff escalation sends QQQ 3.40% lower and SPY 2.83% lower
QQQ fell 3.40% and SPY fell 2.83%, leaving QQQ 0.57 percentage points behind. China's countermeasures against U.S. shipping restrictions, Trump's threatened financial response, and an additional 100% tariff announcement defined the trade backdrop. Permanent federal layoffs and delayed industrial-production data highlighted shutdown disruption. Waller and Musalem kept further rate cuts in view while emphasizing caution and anchored inflation expectations.
Published
- QQQ
- -3.40%
- SPY
- -2.83%
- QQQ − SPY
- -0.57%
What shaped the session
Shutdown and data disruption
The White House said permanent layoffs affecting thousands of federal workers had begun. The Fed delayed the October 17 industrial-production report because required government data were unavailable.
Fed path and inflation
Waller expected more rate cuts but urged caution. Musalem said tariff inflation should fade in the second half of 2026 and stressed that a balanced policy approach depends on anchored inflation expectations.
Key news
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