US Tech and Retail Stocks Plunge After Trump’s Tariff Announcement
- tech360.tv
- 4 days ago
- 3 min read
U.S. technology and retail stocks led a global market sell-off after President Donald Trump announced sweeping new tariffs, sparking fears of rising costs and economic slowdown.
Trump said he would impose a 10% baseline tariff on all U.S. imports, along with higher duties on dozens of countries, pushing tariffs to their highest level in over a century, according to Fitch Ratings.
The Dow Jones Industrial Average dropped more than 3%, while the S&P 500 fell nearly 4%.
Apple shares plunged 8.8%, the biggest drag on the S&P 500, as more than 90% of its manufacturing is based in China. Rosenblatt Securities estimated Apple could face USD 39.5 billion in tariff costs, potentially slashing operating profit and earnings per share by nearly 32%.
PC makers Dell and HP saw shares fall 17% and 14%, respectively, with cost increases of 10% to 25% expected. This could add between USD 200 and USD 500 per unit, according to Cosmos Currency Exchange.
Microsoft and Alphabet also declined, down 1.5% and 3.2%, respectively. The iShares Semiconductor ETF dropped 9.1%, as chipmakers are expected to be affected by the 10% baseline duties.
Retailers were hit hard, with Walmart, Amazon and Target falling between 1.5% and 11%. China, Vietnam, Cambodia and Indonesia, key sourcing countries, were hit with tariffs ranging from 32% to 54%.
Nike and Lululemon shares dropped about 12% and 10%, respectively. Jefferies analysts warned that all footwear and apparel company margins would be affected.
The S&P 500 retail index fell 6%, reaching its lowest level since Sept. 2024.
Major banks including JPMorgan Chase, Citigroup and Bank of America fell between 6% and 11%, as fears of weaker consumer confidence and reduced investment banking income grew. The S&P 500 banks index dropped 7.6%, while the KRW Regional Bank Index fell 7.8%.
Automakers also declined, with Ford and General Motors down 4.7% and 3.8%, respectively. Electric vehicle makers Rivian, Lucid and Tesla dropped 7.3%, 1.9% and 5.3%.
Tariffs are expected to add USD 2,500 to USD 5,000 to the cost of the lowest-priced American cars, and up to USD 20,000 for some imported models. The estimated consumer impact is USD 30 billion in the first year, according to Anderson Economic Group.
Ford announced discounts on several models starting Thursday to counteract rising prices from competitors.
Pharmaceuticals were temporarily exempted from the tariffs. Johnson & Johnson shares rose 2.7%, while Amgen and Merck gained less than 1%. Pfizer fell about 1%.
UBS analyst Trung Huynh warned the industry may still face future tariffs. U.S. drugmakers are lobbying for a phased-in approach to reduce the impact and allow time to shift manufacturing.
Medical device makers such as Dexcom and GE Healthcare declined, as their supply chains remain vulnerable to tariffs on China, the European Union and Mexico.
Energy stocks also fell sharply, despite oil, gas and refined products being exempt. Brent crude and U.S. WTI dropped more than 6%.
APA, Devon Energy, Halliburton and Valero were among the biggest losers in the sector, down between 12% and 14%.
Henry Hoffman, co-portfolio manager of the Catalyst Energy Infrastructure Fund, said crude prices are under pressure due to fears of a global economic slowdown and OPEC’s surprise move to increase output.
Trump’s new tariffs trigger global market sell-off
Apple, Dell, HP and major retailers see sharp stock declines
Banks, automakers and energy firms also hit hard
Source: REUTERS