Nasdaq 100 falls 0.8% after Trump China comments

Nasdaq 100 falls 0.8% after Trump China comments

The Nasdaq 100 index fell 0.8% on Friday, September 12, 2025, following President Donald Trump's comments on potential trade discussions with Chinese President Xi Jinping. The decline was driven by uncertainty surrounding trade policies and their potential impact on U.S. and global markets .

The Nasdaq 100, which tracks the performance of 100 of the largest non-financial companies listed on the Nasdaq Stock Market, has been a key indicator of the technology sector's performance. The index's drop comes amid broader market volatility, with major benchmark indices also experiencing fluctuations in response to geopolitical developments .

Despite the overall market decline, several companies reported positive earnings. Delta Air Lines Inc. (NYSE:DAL) and PepsiCo Inc. (NASDAQ:PEP) both saw significant gains after beating earnings estimates . However, these positive earnings reports did not offset the broader market sentiment, which was negatively impacted by the trade comments.

Institutional investors also showed continued interest in large-cap growth stocks. Walker Financial Services, Inc. disclosed a new position in the Invesco NASDAQ 100 ETF (NASDAQ:QQQM), purchasing 32,301 shares valued at an estimated $8 million in the third quarter . This investment reflects the ongoing appetite for technology and large-cap growth stocks, which have been driving market performance.

The 10-year Treasury bond yielded 4.11% and the two-year bond was at 3.58% on Friday, indicating a cautious stance among investors . The CME Group's FedWatch tool projected a 94.6% likelihood of the Federal Reserve cutting interest rates in its October meeting, adding to market uncertainty .

In summary, the Nasdaq 100's decline on Friday was largely driven by President Trump's comments on trade discussions with China. While positive earnings reports provided some support, broader market volatility and uncertainty surrounding trade policies contributed to the index's drop. Institutional investors remain bullish on large-cap growth stocks, as evidenced by recent investments in the Invesco NASDAQ 100 ETF.