The Dow Jones Industrial Average (DJIA) faced heavy selling on Wednesday, dropping more than 500 points at its intraday low. Investors are increasingly risk-averse as the Trump administration signals potential escalation in already tense trade relations between the US and China. Meanwhile, another subprime lender has declared bankruptcy, exposing vulnerabilities in the US credit and lending sectors.
Sources indicate the Trump administration is considering restrictions on software exports to China, a move aimed at retaliating against Beijing’s recent steps to tighten government control over the export of rare earth minerals. US industries, particularly in the technology sector, rely heavily on unfettered access to China’s rare earth metals markets.
Subprime lender PrimaLend’s bankruptcy has further rattled investors, compounding concerns about the stability of the US lending industry. This latest collapse follows the recent failure of an automotive lender, adding to broader financial sector unease.
In agricultural news, US farmers criticized President Donald Trump over his plan to import beef from Argentina to offset shortfalls caused by a 50% tariff on Brazilian imports. The move sparked backlash from American cattle producers, prompting a rare public exchange with the president, who accused farmers of “not understanding” the benefits of his tariff policy.
