The stock market is on edge due to a convergence of major risks: escalating trade tensions with China and the persistent threat of a US government shutdown.
The immediate trigger for the latest anxiety is President Donald Trump’s renewed threat to restrict software and aircraft sales to China. This is a direct response to China halting US soybean purchases and imposing restrictions on rare earth exports.
The US government has been shutdown since October 1. The US House Ways and Means Committee Chair Smith says that lawmakers are weighing a stopgap bill through December 2026.
The Technical Picture (NASDAQ):
The technical damage is visible. The NASDAQ Index has now broken below its 200-hour moving average at 22,637.66. A sustained move below this key technical level confirms that sellers are in firm control in the near term.
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Next Downside Target: The primary support to watch is the 22,400 area, which aligns with a rising trendline and a swing low area.
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Critical Support: If 22,400 fails, the focus shifts to the major technical support at 22,143.26—the 38.2% Fibonacci retracement of the rally that began on August 1st.
While the NASDAQ index is the weakest of the major 3 indices, the S&P index is also lower by -0.94% currently, while the Dow industrial average is down -0.76%.
Tesla will report their earnings after the close. The stock is down $11.18 or -2.54% at $431.30. The EPS is expected at $0.55 while revenues are expecting a $26.54 billion
