President Donald Trump ignited a fresh wave of investor anxiety over U.S.-China trade tensions late last week, fueling a sharp selloff across stock markets and other risk assets. The trigger: a fiery rebuke of Beijing's decision to tighten export controls on rare earths, followed by a threat to impose a sweeping 100% tariff on all Chinese imports.
Markets regained some semblance of stability this week after Trump softened his tone toward Beijing over the weekend. But the sudden spell of volatility has unraveled an interesting pattern: that of Wall Street being more resilient to flare-ups in U.S.-China tensions than Chinese equities—especially in the tech sector.
