Traders watch as U.S. President Donald Trump and Russian President Vladimir Putin greet each other as they meet to negotiate an end to the war in Ukraine at Joint Base Elmendorf-Richardson in Anchorage, Alaska, on the floor of the New York Stock Exchange on August 15, 2025 in New York City, USA.
Brendan McDiarmid | Reuters
This is CNBC’s Morning Squawk newsletter. Subscribe here to receive future editions in your inbox.
Here are five important things investors need to know to start their trading day.
1. October Surprise
Stocks fell on Friday after President Donald Trump threatened a “massive increase in tariffs” on Chinese goods. President Trump’s comments came as the Chinese government expanded export restrictions on rare earth materials, a move he described as “hostile” in a social media post.
Here’s what you need to know:
The U.S. stock market shed $2 trillion worth of value in response to President Trump’s post Friday morning, Bespoke Investment Group said. Friday’s decline ended a period of calm for the market. of CBOE Volatility IndexThe index, known as Wall Street’s “fear gauge,” has soared to levels not seen since June. S&P500 There was no move of at least 1% in either direction, ending a 33-day streak. After markets closed, President Trump announced 100% tariffs on Chinese imports starting November 1st, as well as export restrictions on critical software. Over the weekend, a Chinese official said China was “not afraid” of a trade war. Stock futures rose this morning after President Trump said on Sunday that “everything is going to be fine” with China. Chinese President Xi Jinping “doesn’t want a depression for his country, and neither do I,” Trump wrote on Truth Social. Follow us here for live market updates.
2. Initiatives of interest
Exterior view of a JPMorgan Chase branch in New York City, New York, January 14, 2025.
Kenna Betancourt | View Press | Corbis News | Getty Images
JP Morgan Chase announced this morning that it is formally launching a plan to acquire stakes in companies it deems core to America’s national interests and national security.
The bank announced it will invest up to $10 billion in companies across multiple categories, including defense, aerospace and energy technology. CNBC’s Hugh Song noted that the plan is part of JPMorgan’s broader safety and resiliency initiative, which includes facilitating bank loans or $1.5 trillion in financing to companies it deems important to U.S. national interests.
The bank’s stock rose 1.4% in pre-market trading.
3. Pink slip or payslip?
U.S. President Donald Trump looks on at the announcement regarding U.S. drug price reductions at the White House in Washington, DC, on October 10, 2025.
Kent Nishimura | Reuters
The Trump administration announced Friday that it has begun laying off federal employees as the government shutdown approaches its third week with no end in sight. President Trump previously warned that the shutdown would lead to permanent reductions in the federal workforce, saying “many” government jobs would be cut.
The president said over the weekend that his administration had identified “funds” to pay active-duty service members if the shutdown continues through Oct. 15, when they are scheduled to receive their next paycheck.
Meanwhile, Vice President J.D. Vance took aim at the Affordable Care Act credits, which have become a lightning rod for Congress’s funding stalemate. Vance said Sunday that there is “a lot of waste and fraud” in Obamacare subsidies and that the White House wants to make sure “the tax credits go to the people who need them.”
4. Cool kids
NEW YORK, NEW YORK – APRIL 13: Panoramic view of the Macy’s store in Midtown Manhattan on April 13, 2025 in New York City.
Anthony Devlin | Getty Images
Gen Z may not shop at department stores, but baby boomers do. Please take a look Macy’s For example, its subsidiary Bloomingdale’s. Data shows that the majority of shoppers are over 45 years old.
Baby boomers may be satisfied with in-store perks like loose return policies and promotional events, and loyalty from this generation could help department stores energize amid the rise of online retailers.
But when it comes to attracting younger shoppers, department stores’ popularity among baby boomers could be a hindrance. One retail advisor said the mindset of young consumers is that they “don’t want to shop where their mom is shopping.”
5. Components
People depart from the Lego Store in Manhattan, New York City, August 29, 2024.
Spencer Pratt | Getty Images
More than one million children around the world are using LEGO toy MRI scanner sets to prepare for medical procedures, the toymaker announced today.
According to the company’s survey, 96% of healthcare workers said the two-year-old model helped reduce anxiety in children. Nearly half said their child needed less sedation after playing with a miniature MRI set.
daily dividend
Earnings season begins in earnest. This week’s highlights include: (If the government shutdown continues, some economic announcements will not be released as scheduled.)
CNBC Pro subscribers can see the complete calendar and overview of the week here.
—CNBC’s Raya Neelakandan, Ana Teresa Sola, Jessica Dickler, Laura Kolodny, Dan Mangan, John Meloy, Sean Conlon, Sarah Ming and Kevin Breuninger contributed to this report. Josephine Rozzelle edited this version.
