Tariffs are back in conversation, so are rare earths, and the market is bearish, as reflected in the Friday stock market losses.
- The S&P 500 declined 2.4% this week, despite positive earnings reports that failed to shield it from the impact of tariff threats.
- The tech-heavy Nasdaq Composite, despite achieving a 52-week intraday high, closed 3.6% lower on Friday and was down 2.5% for the week.
- The Dow Jones Industrial Average has not been performing well this month, due to market volatility, and was down 2.7% this week and 1.4% for the month.
- The small-cap Russell 2000 was hit the hardest, down 3.3% this week, reflecting a 3% loss just on trading Friday.
The threat of fresh tariffs looms large over the market. If you did not hear about it, President Donald Trump’s single post on Truth Social sent the market into a frenzy on Friday.
Indices that had been edging closer to reaching new records and maintaining several past Friday’s record highs, spiraled immediately after President Trump announced 100% additional tariffs on China.
In response to China’s announcement of imposing large-scale export controls on rare earths, effective November 1st, President Trump wrote in a social media post,
“Starting November 1st, 2025 (or sooner, depending on any further actions or changes taken by China), the United States of America will impose a Tariff of 100% on China, over and above any Tariff that they are currently paying.”
Further adding that effective November 1st, the U.S. will also “impose Export Controls on any and all critical software.”
These controls restrict free trade, including that of technical data, and impact trade relations, which sent the market toppling, worrying investors over fresh battles, the last of which heavily impacted the markets in April, around Liberation Day.
The week started on a positive note, with major indices reporting fresh highs, despite the ongoing government shutdown, which has been dragging on for two weeks.
As is common in an unstable market, investors often find refuge in tangible assets. In this case, the precious metal gold crossed a record high of $4000 and, aside from a 1% low one day, gained 3.2% this week.
The CBOE Volatility Index, also known as the Fear Index, which measures market sentiment and risk, gauges market dynamics, was up 30% this week, signaling that after months of calm, the market may be gearing up for a slump.
Focusing on the stocks that kept the market afloat or were impacted by the tariff frenzy and market volatility, we include Pepsi, which rose 5.7% this week following a positive earnings report.
Tilray, a marijuana consumer packaged goods company, gained 6.2% this week despite an 18% loss on Friday. Meanwhile, Nvidia, which is leading the AI space and gaining ground because of it, was down 2.4% this week.
Why did Nvidia’s stock fall despite a lucrative deal?
Nvidia entered the $4.5 trillion club this past month, capitalized on several beneficial investments, including a strategic investment in semiconductor manufacturer Intel and a $100 billion investment in OpenAI.
More Nvidia:
- Goldman Sachs tweaks Nvidia’s stock price target with a twist
- Fund manager drops bombshell call on Nvidia stock
- Amazon’s new Alexa feature impacts Nvidia
More recently, the U.S. approved a billion-dollar deal for Nvidia chip exports to the UAE, which had been stalled for the past five months.
The company’s stock soared at the news, recording a fresh high on Friday before President Trump announced tariffs and export controls on tech firms; however, its stock was down 4.9% at the close on Friday.
But, amidst news of investigations and China’s customs crackdown on Nvidia processors, its stock declined 2.4% this week.
Also imminent is an inquiry into Nvidia’s relationship with a Singaporean company called Megaspeed, which, according to a report from the New York Times, has become a “preoccupation in Washington.”
Megaspeed is being investigated for its ties to Chinese tech firms, amid concerns that it is helping companies in China circumvent American export restrictions.
But notwithstanding the troubles, Nvidia has gained 36% year-to-date. Analysts predict that the AI bubble is not temporary, and considering Nvidia’s impact in leading other tech and AI stocks forward, it remains a crucial player in the AI race.
PepsiCo’s strong Q3 presence
On Thursday, PepsiCo released its Q3 2025 earnings report, and the stock surged 4%, making it a top performer among the S&P 500. It continued its high on Friday and closed 3.7% higher.
PepsiCo reported a 2.6% increase in total revenue to $23.94 billion. In its official statement, Chairman and CEO Ramon Laguarta noted, “Our reported net revenue growth accelerated and reflects the resilience of our international business, improved momentum with North America Beverages and the benefits of our portfolio reshaping actions.”
Laguarta further reflects on their future expectation,
“As a result, for fiscal 2025, we continue to expect to deliver low-single-digit organic revenue growth with core constant currency EPS to be approximately even with the prior year.”
As a result, Wells Fargo raised its price target on PepsiCo to $154 from $150, keeping an Equal Weight rating on shares.
PepsiCo also announced a change in authority, naming the former CFO of Walmart US as its new Executive Vice President and Chief Financial Officer, effective November 10, 2025.
Tilray goes on wild ride
Tilray shares recently gained momentum after President Donald Trump posted a video on Truth Social last month, advocating cannabis as a preventive treatment for the elderly.
On Thursday, it released its Q1 2026 earnings report, along with Delta Air Lines, PepsiCo, and Levi Strauss. With a reported revenue of $210 million, its stock soared 12% in pre-market trading, helping it reach a record high of $2.30.
“As we enter fiscal 2026, Tilray’s first quarter results underscore the effectiveness of our strategic vision and disciplined execution, said CEO Irwin Simon. Adding, “Our global platform positions Tilray Brands not just to participate in, but to lead, the evolution of the global cannabis, beverage, and wellness sectors.”
Simon appeared confident of the company’s success and in the U.S and UK changing landscape of cannabis use, to boost Tilray’s position.
However, on Friday, it closed 18% lower, raising questions over the stock’s volatility. Despite the decline, the company’s stock has gained 62% this month and has seen a 29% year-to-date increase.
According to a report from Grand View Research, the U.S. cannabis market was estimated at $38.5 billion in 2024 and is expected to grow at a CAGR of 11.5% from 2025 to 2030, primarily owing to the rising legalization of cannabis and increased acceptance for medical purposes.
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