President Trump threatened new tariffs on Canada, stating the U.S. would impose 50% levies on automobiles, auto parts, and steel starting in January. This escalation follows a tit-for-tat trade conflict after Canadian Prime Minister Mark Carney announced retaliatory measures against earlier Trump tariffs affecting about 5% of Canadian exports.

Meanwhile, Treasury Secretary Scott Bessent launched a campaign against Iran, sanctioning more than 60 entities, individuals, and vessels involved in nuclear technology and cyber operations. The impact on China remains unclear, as it purchases around 90% of Iran’s oil exports.

Stocks declined, with the S&P 500 down 0.3% and the Nasdaq falling 0.8%. Chip stocks led losses; Nvidia dropped 2.9%, while the PHLX Semiconductor Index fell 2.7%. U.S. automakers also suffered: Ford, General Motors, and Crysler-owner Stellantis dropped 3.3%, 1.1%, and 4.8% respectively.

In other news, Shein priced its initial public offering at approximately $27 billion, significantly below its previous $100 billion valuation. Despite this reduction, the Hong Kong listing remains one of the year's largest. Additionally, Bessent’s efforts to stabilize the bond market may benefit from crypto legislation under the Genius Act, which allows stablecoins to back dollar values with short-term Treasurys.