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U.S. stocks tumbled in a broad sell‑off today, with the Dow Jones Industrial Average plunging roughly 800 points as renewed tariff concerns and a wave of AI‑related volatility shook market confidence. The S&P 500 and Nasdaq also slid sharply, extending a week of choppy trading driven by political uncertainty and rapid shifts in tech sentiment. Investors reacted to escalating fears that new tariff measures proposed by President Trump could disrupt global supply chains and pressure corporate earnings. Tech stocks—already sensitive to policy shifts—were hit particularly hard as traders unwound positions tied to what analysts have dubbed the “AI scare trade,” a fast‑moving rotation away from high‑growth names. Market strategists noted that the combination of geopolitical tension, policy ambiguity, and stretched valuations created a perfect storm for a sharp pullback. Still, some analysts argue that the downturn reflects a recalibration rather than a fundamental shift, pointing out t...

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U.S., Britain, and Australia Consider Expanding AUKUS Security Pact to Counter China’s Influence

 

The United States, the United Kingdom, and Australia are poised to engage in talks aimed at broadening their AUKUS security pact. This move comes as Washington advocates for Japan’s inclusion in the pact as a strategic measure against China’s growing assertiveness in the Indo-Pacific region.

The AUKUS pact, unveiled by the three nations in 2023, represents their collective efforts to curb China’s increasing influence. It encompasses joint initiatives related to quantum computing, undersea capabilities, hypersonic technology, artificial intelligence, and cyber advancements. These areas fall under the pact’s “pillar two” commitment.

The upcoming talks will explore the possibility of bringing new members into the AUKUS fold. While the first pillar of the pact focuses on delivering nuclear-powered attack submarines to Australia, the second pillar aims to foster technological collaboration among the member countries. Japan’s involvement is seen as crucial in countering China’s military buildup and territorial ambitions.

China has expressed concern over the AUKUS pact, labeling it as dangerous and warning of a potential arms race in the region. U.S. Deputy Secretary of State Kurt Campbell emphasized that the AUKUS submarine project could serve as a deterrent against any Chinese aggression toward Taiwan, a democratically governed island that Beijing claims as part of its territory.

President Joe Biden has actively sought to strengthen partnerships with Asian allies, including Japan and the Philippines. His administration aims to bolster regional security and stability amid China’s geopolitical maneuvers. In the coming days, Biden will host Japanese Prime Minister Fumio Kishida in Washington and convene a trilateral summit, which will also include Philippine President Ferdinand Marcos Jr.

As geopolitical dynamics continue to evolve, the international community closely watches how these diplomatic efforts unfold and their impact on the delicate balance in the Indo-Pacific theater.


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