SPY Drops 1.59% as Trade Tensions and Political Gridlock Shake Wall Street

Amid renewed U.S.–China trade tensions and a prolonged government shutdown, the S&P 500 dips while select stocks like Oracle, T-Mobile, and Abbott rally on bullish analyst upgrades.

Published by Ecem EFE

11 October 2025, 15:37 published Updated 11 October 2025, 15:37

Trade Fears Return: SPY Drops While McDonald’s and Procter & Gamble Show Resilience

SPY Drops – The S&P 500 dips amid renewed geopolitical stress, but select blue-chip stocks shine on bullish upgrades from Wall Street analysts.

Wall Street Stumbles as Political Risks Escalate

At 1:45 PM ET, the SPDR S&P 500 ETF (NYSEMKT: SPY) was down 1.59%, as markets grappled with a resurgent U.S.–China trade conflict and a prolonged U.S. government shutdown now entering its tenth day. With key economic data releases stalled, investor sentiment has turned risk-averse, clouding visibility ahead of the earnings season.

The spike in market anxiety follows a sharp warning from President Donald Trump, who threatened a “massive increase” in tariffs on Chinese imports. Meanwhile, China retaliated by introducing new port fees on U.S. shipping vessels and tightening export controls on rare earth minerals — critical components in many American tech and defense products.

Shutdown Stalls Data, Clouds Market Outlook

The ongoing shutdown has frozen government reporting on employment, inflation, and manufacturing, leaving investors with fewer tools to gauge the health of the economy. With little clarity, markets are vulnerable to sentiment-driven swings, particularly with major geopolitical risks in play.

Still, earnings season may bring a much-needed catalyst. JPMorgan and Citigroup are scheduled to report Q3 results next week, marking the unofficial start of quarterly disclosures. Analysts are watching closely to see whether corporate strength can offset political noise.

Stock-Specific Optimism Emerges Amid Broader Gloom

Despite macro headwinds, several S&P 500 components gained ground on Friday thanks to upgrades and bullish outlooks from top analysts. Here’s a breakdown of standout performances:

Abbott (NYSE: ABT) — New Buy Rating Sparks Rally

Benchmark initiated coverage on Abbott with a Buy rating and a $145 price target, citing the company’s diversified product mix across diagnostics, medical devices, and nutrition. Analysts expect mid-single-digit sales growth and double-digit EPS expansion, with the firm’s global footprint acting as a buffer against tariff-related pressures.

T-Mobile (NASDAQ: TMUS) — Price Target Raised to $295

Benchmark also raised its price target for T-Mobile from $275 to $295, maintaining its Buy rating. The upgrade was driven by T-Mobile’s network superiority and market share gains, positioning it strongly amid economic uncertainty. Robust key performance indicators (KPIs) fueled bullish sentiment despite the backdrop of political instability.

Oracle (NYSE: ORCL) — Cloud Confidence Drives Upgrade

Oracle shares climbed as Citi increased its price target from $395 to $415, while Evercore ISI bumped its target from $340 to $350, both maintaining bullish outlooks. Analysts cited strong momentum in Oracle’s cloud and AI infrastructure, with Evercore projecting FY30 OCI revenue could reach $200 billion. The upgrades underscore investor enthusiasm for Oracle’s long-term growth story.

McDonald’s (NYSE: MCD) — Resilience in a Shaky Market

Guggenheim adjusted its price target for McDonald’s to $295 from $310, keeping a Neutral rating. Despite trade-related volatility, analysts highlighted McDonald’s global reach and menu innovation as key strengths. Slight reductions to 2025 and 2026 EPS forecasts ($12.20 and $13.25, respectively) reflect caution but not pessimism, with same-store sales growth expected to provide support.

Procter & Gamble (NYSE: PG) — A Defensive Play Amid Chaos

JPMorgan raised Procter & Gamble’s price target from $163 to $170, while holding a Neutral rating. Despite a soft Q3 outlook due to weakened U.S. demand and retail inventory cuts, the company’s household essentials portfolio and global exposure are expected to cushion the blow. Analysts pointed to pricing power and modest organic growth as reasons to view PG as a defensive stock in uncertain times.

Can Earnings Steady the Ship?

As the market braces for more potential shocks, all eyes will turn to the coming earnings reports from major financial institutions. If corporate results exceed expectations, they may help counterbalance the negativity fueled by political drama and policy uncertainty.

Until then, investors are navigating blind, with data silenced and geopolitical risk turned up to eleven. For now, sector-specific momentum and company fundamentals may be the only guiding lights in an increasingly foggy market.