CNBC Business News Update - Market Midday: Stocks Plunge, President Trump Threatens China With Massive Tariffs, Some Consumer Spending Slowed In September 10/10/25

Episode Date: October 10, 2025

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I'm Jessica Eddinger, CNBC. Major averages took a major turn and are in the red this afternoon. A volatile day on Wall Street after President Trump posted that China is getting hostile, even threatening higher tariffs. The Dow down 627 points this afternoon. Amazon shares leading it lower. They're down more than 4%. The S&P 500 index is now down 129 points, almost 2%. The NASDAQ, down 612 points, 2.5%. InVIDIA shares are down almost 3% this afternoon. CNBC's Aiman Javvers has the latest on what President Trump posted that sent stocks into a sell-off today. It was a fiery social media post from the president.

This responding to the Chinese move to put export controls on rare earth minerals. That's seen as something of an aggressive move by the Chinese against U.S. technology supply chains. He said, I was to meet President Xi in two weeks at APEC in South Korea, but now there seems to be no reason to do so. I will be forced as the president of the United States of America to financially counter their move. He goes on to threaten massive increases in tariffs here and says that the U.S. administration is considering what its moves might be. So no specific retaliation here yet. What we've got is a rhetorical firing up of the response from the president. CNBC's Aymn Javvers.

Here's New Edge Wealth's Rob Seichen on CNBC. I think the sharp reaction to this news shows how price for perfection markets have become and how subject to a little bad news they could be. And here's High Tower's Stephanie Link on CNBC. We're looking for opportunities to be buying better economic growth, Decent consumer, AI renaissance, good earnings. Earnings are going to be very good. And the good news is on Tuesday we start to get earnings.

So, and which I think the banks are going to be very strong. And you're looking for opportunities that speaks to people wanting to buy the dip. And I think that they will and I think they should. Investors could get the latest on inflation next week, even with the government shutdown. The Bureau of Labor Statistics has recalled staff today to get the September consumer price index ready. It's scheduled to come out next Wednesday. Consumers pulled back their spending in some areas in September in the new Bank of America checkpoint data using info from almost 70 million account and credit card holders at that bank. As inflation rises and prices go up, Americans have

to spend more just by the same things. Retail spending was actually down just too tense, but you did see a difference there between what we were seeing in services, which continue to grow gas obviously was up and then retail came down. What really stuck out to me, though, was there was really a bifurcation in terms of the spending between higher income and lower income households. The difference was fairly significant. So lower income households increased their spending by six-tenths. But higher income households spending growth increased by 2.6 percent, right? So that's more than four times higher than what you were seeing. Bank of America Institutes Liz Everett, Chrisberg on CNBC.

One thing consumers may save on soon, prices at the pump oil, is down around $60 a barrel today. Levi Strauss shares plunged, even with strong quarterly results in a better outlook, as the denim maker warned that tariffs are starting to bite. Tonight's mega-millions jackpot, more than a half billion dollars, at $575 million. Jessica Eddinger, CNBC. You come to my show and you learn how to do this. Stop. Mad Money, Weeknight 6 Eastern, CNBC.