Market Musings 10/21/2025
Quick thoughts on the markets and major portfolio news. Not on Ursa yet? Download Ursa from the App Store!
Markets shrug off #Tariffs and make full recovery despite more tension…
Less than two weeks since the White House restarted the #Tariffs drama with China, markets have already shrugged it off and fully recovered.
Two weeks ago, the White House lashed out threatening 100% #Tariffs after China’s move to restrict exports of rare earth metals. (The stuff used in everything from EV batteries to defense systems.)
It was the sharpest escalation since spring and markets tumbled fast.
Things seems to be heating up over the weekend as China hit back with new port fees on US ships as well as other targeted export bans. However, Sunday night, the White House dialed down the rhetoric－sparking a Monday relief rally.
Despite attempting to deescalate, US officials continued to blast China’s move as unacceptable and the work of a rogue actor, but insisted the trade talks were still on. It was a classic taco retreat helping investors regain market confidence and shrugging it over the next week.
The S&P 500 has fully recovered from before the #Tariffs drama 2.0 and markets are right back on the taco trade.
The US continues to mouth off… but is anyone actually still paying attention? Hence, the investor indifference. 100% #Tariffs were threatened to begin on November 1st－conveniently when the talks were scheduled to be held. Meanwhile, the US is trying to make headlines for rare earth partnerships elsewhere, but we don’t see that really moving the needle near-term.
Meanwhile, China hasn’t rescinded its new export policy nor additional port fees and export bans. We also do see China likely getting bolder in #Tariffs standoff and would expect them to continue to test the boundaries.
Ultimately, we don’t see much changing with #Tariffs other than political posturing. We expect the APEC talks to happen, but resulting in what? More trade “progress” with a improved trade “framework”?
Expect the #Tariffs delay standoff to continue…
No Ursa account yet? Download Ursa here!
The statements, opinions and analyses presented here are provided as general information. This article is the opinion of the author. Anything within this article should NOT be considered an investment recommendation or advice. See Ursa’s full disclosures here.
Original Photo by Pixabay.