Key Points
- Just days ago, China expanded its rare earth export restrictions ahead of a possible Trump-Xi meeting.
- Now, in return, President Trump just threatened China with 100% tariffs.
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Oct 14, 2025 10:52 AMAfter a rough open, markets are starting to regain momentum.
The Dow is now down just 72 points. The NASDAQ is down 196, with the S&P 500 now down about 30 points. Even though trade war fears are mounting, markets appear to be shrugging it off, fighting for further upside.
Bank earnings have also been strong today.
Wells Fargo is gaining momentum on a strong beat. In its third quarter, the bank posted EPS of $1.66, which was 11 cents better than estimates. Revenue of $21.44 billion, up 5.3% year over year, beat by $280 million.
JPMorgan’s EPS of $5.07 beat by 26 cents, with revenue of $47.1 billion beating by $1.53 billion.
Citigroup also posted strong earnings, with all of its divisions posting strong revenue. The bank posted $22.1 billion for its latest quarter, up from $20.2 billion year over year. Earnings per share jumped 23% to $1.86 a share.
Markets are Dropping as Trade Fears Mount
Oct 14, 2025 10:14 AMThe Dow Jones is now down 317. The NASDAQ is down 308, as the S&P 500 sinks 58 points. All as trade war tensions mount yet again.
Not helping, China’s commerce ministry just said the US was “threatening to intimidate” with the prospect of new tariffs on Chinese exports, “which is not the right way to get along with China,” as noted by The Guardian. China added it would “fight to the end” in trade talks.
The comments followed U.S. Treasury Secretary Scott Bessent’s statement that China wanted to “pull everybody else down with them” by damaging the world economy.
TheVanguard S&P 500 ETF(NYSEMKT: VOO) is coming under pressure this morning as trade tensions between the U.S. and China boil over with rare earths.
Just days ago, China expanded its rare earth export restrictions ahead of a possible Trump-Xi meeting. “China has tightened export controls on rare earths and related technologies while barring its citizens from participating in unauthorized mining overseas, adding fresh strains to a sector central to its geopolitical leverage,” as noted by CNBC.
Making it worse, “Chinese rare earth magnet companies have been facing tighter scrutiny on export license applications since September, sources say, even before Beijing’s move last week to expand controls over the critical minerals used in magnets,” as noted by Reuters.
Now, in return, President Trump just threatened China with 100% tariffs starting on November 1 in retaliation for Beijing’s export controls on those rare earths.
As a result of the back and forth, rare earth metal stocks, like USA Rare Earth (NASDAQ: USAR), are up another 9% in premarket.
MP Materials (NYSE: MP) is up another 4.5%, or $4.25 a share, in premarket.
Major Earnings are Hitting the Market
Tuesday, October 14: Citigroup (NYSE: C), JPMorgan Chase (NYSE: JPM), and Wells Fargo (NYSE: WFC) just reported earnings. Wells Fargo is gaining momentum on a strong beat. In its third quarter, the bank posted EPS of $1.66, which was 11 cents better than estimates. Revenue of $21.44 billion, up 5.3% year over year, beat by $280 million.
JPMorgan’s EPS of $5.07 beat by 26 cents, with revenue of $47.1 billion beating by $1.53 billion.
Citigroup also posted strong earnings, with all of its divisions posting strong revenue. The bank posted $22.1 billion for its latest quarter, up from $20.2 billion year over year. Earnings per share jumped 23% to $1.86 a share. Citigroup also declared a 60-cent per share dividend, which is payable on November 26 to shareholders of record as of November 3.
Wednesday, October 15: Bank of America (NYSE: BAC), Goldman Sachs (NYSE: GS), and Morgan Stanley (NYSE: MS) will all report in premarket.
Thursday, October 16: M&T Bank (NYSE: MTB), U.S. Bancorp (NYSE: USB), CSX Corporation (NASDAQ: CSX), and Charles Schwab (NYSE: SCHW) are all set to post earnings, too.
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