Tariffs steal spotlight as AI frenzy seems to fade

After a few weeks of intense focus on whether there is an AI bubble in the markets or not, a recurrent character of 2025 has emerged to the fore: tariffs. 

On Friday stateside, tech stocks recovered slightly after the Nasdaq hit its lowest level in about 3 weeks, perhaps indicating that the AI-fueled volatility could be nearing an end. 

However, just as AI steps away from the spotlight, tariffs enter the stage, like the next act in a Shakespearean play. 

The Trump administration reached a deal with Switzerland Friday stateside to lower duties on Swiss exports to 15% from 39%, in return for a $200 billion investment in the U.S. by the end of 2028. 

On the homefront, Trump also started to roll back tariffs on goods such as coffee, fruits and certain beef products after acknowledging that prices, specifically coffee, "were a little bit high."

These rollbacks mark a sharp reversal in stance for the U.S. President and his officials, which said that tariffs will not raise prices. 

In a way, the U.S. President may try to change the laws of politics with his sweeping tariff moves, but even he cannot change the laws of economics.

Epstein files release. U.S. President Donald Trump called on Republicans in Congress to vote to release files related to deceased convicted sex offender Jeffrey Epstein, a sharp reversal from previous resistance within his inner circle.

Alibaba reportedly helping China military. Alibaba is helping the Chinese military to target the U.S., according to a White House memo, the Financial Times reported Friday. "The assertions and innuendoes in the article are completely false," Alibaba said in a statement to CNBC on the FT report.

Japan GDP falls. Japan's economy contracted by a smaller-than-expected 1.8% in the third quarter on an annualized basis, with growth in private and government consumption limiting the decline. On a quarter-on-quarter basis, GDP in the three months to September contracted for the first time in six quarters, falling 0.4%.

Nasdaq recovers. The tech heavy index rebounded on Friday as investors bought up shares of key technology stocks, a day after the group led Wall Street to its worst day in more than a month. Asia-Pacific markets were mixed Monday as investors assessed rising friction between Japan and China. 

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