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Stock market today: S&P 500, Nasdaq set to tank, Dow to drop over 1,000 points as Trump’s tariffs rip through markets worldwide
- Yahoo Finance’s Brian Sozzi reports:
- Read more here.
- Before the bell, futures tied to the Nasdaq led the way down — almost 4%. Dow futures dropped over 1,200 points, and S&P 500 futures tanked by 3.4%.
- Oil prices dropped after US President Donald Trump imposed harsh tariffs on key trading partners, including China and the EU. While energy was exempt, the move escalated the trade war, raising concerns about global demand. The tariffs sparked fears of economic slowdown, affecting oil markets.
- Brent crude (BZ=F) declined as much as 4% to $71.55 a barrel, tracking a slump in wider markets.
- Bloomberg News reports:
- Read more here.
- Apple (AAPL) shares fell over 7% before the bell, still leading the sell-off in tech stocks that followed Trump’s bigger-than-expected tariffs.
- Apple’s overseas production hubs are particularly vulnerable, given the iPhone maker’s presence in China, Vietnam, and India. These countries will face tariffs of 34%, 46%, and 26%, respectively, once additional levies are taken into account.
- “Apple produces basically all their iPhones in China, and the question will be around exceptions and exemptions on this tariff policy if those companies are building more operations, factories, and plants in the US like Apple announced in February,” Wedbush analyst Dan Ives said in a note to clients on Wednesday.
- Elsewhere in techs, chip stocks should also face significant pressure, with Nvidia (NVDA) and others exposed to China and Taiwan supply chains.
- “The worry will be around pricing and margin impacts along with what this means for the global supply chain looking forward,” Ives said.
- For now, the analyst continues to believe major negotiations will happen over the coming months as companies attempt to navigate “this new world of tariffs.” Until then, he warned, “tech stocks will clearly be under major pressure.”
- Gold (GC=F) pulled back on Thursday after hitting a fresh record, as President Donald Trump’s broad “reciprocal” tariffs rattled global markets.
- Bloomberg News reports:
- Read more here
- Stocks in Europe tumbled after Trump imposed a 20% tariff on US imports from the EU, drawing a threat of retaliation from its top trading partner.
- The pan-European benchmark Stoxx 600 (^STOXX) was trading 1.4% lower on Thursday, with the basic material, consumer product and industrial sectors leading the declines.
- Germany’s DAX (^GDAXI) Index slid 1.3%, while France’s CAC 40 (^FCHI) slumped 1.6%.
- The FTSE 100 (^FTSE) fell 1.2%, with bank and mining stocks taking a hit, though the UK faces just the baseline 10% US tariff on its goods.
- Fears are that the new tariffs will damage Europe’s economy, as Bloomberg reports:
- Read more here.
- Japan’s Nikkei 225 stock index closed at its lowest level in around eight months amid an exodus from shares of automakers and electrical appliance makers in the wake of Trump’s new tariffs.
- The blue-chip benchmark sank 2.8% as investors weighed the impact of additional 24% duties on US imports of Japanese goods.
- “The additional 24% tariffs on Japanese goods will have a significant impact on Japanese stocks,” said Jumpei Tanaka, head of investment strategy at Pictet Asset Management, told Bloomberg.
- There’s a growing chance that the Bank of Japan will refrain from raising interest rates, “leading to pressure on bank stocks, which have been rising since the beginning of the year,” Tanaka added.
- The broader Topix Index in Tokyo fell 3.1%, with banks contributing significantly to its losses.
- US-listed Nike (NKE) shares fell over 8% premarket on Thursday after US President Donald Trump imposed steep new tariffs on key sourcing markets, including Vietnam, Indonesia, and China.
- Reuters reports:
- Read more here
- As markets sold off late Wednesday, President Trump touted the domestic investments from Big Tech as companies like Apple (AAPL), Nvidia (NVDA), and others pledge billions to expand their respective footprints in the United States.
- “Apple is going to spend $500 billion. They never spent money like that here,” Trump said, referencing the company’s plans to invest in its US operations over the next four years, which will include plans to build a new manufacturing factory, double its advanced manufacturing fund, and hire 20,000 people.
- Apple (AAPL) shares still fell over 7% in after-hours trading given its exposure to countries set to be hit by increased tariffs.
- Trump added that Apple’s investment will be matched by Oracle (ORCL), ChatGPT creator OpenAI, and Japanese conglomerate SoftBank (9984.T) — a nod to the $500 billion ‘Stargate’ AI venture announced earlier this year.
- At the time, Trump claimed the venture would create “over 100,000 American jobs almost immediately.”
- Plus, “Nvidia, a hot company, is investing hundreds of billions of dollars” into the US supply chain, Trump said. And “TSMC — the biggest and most important company in the world of chips from Taiwan — with no investment from us, is investing $200 billion.”
- TSMC (TSM) announced last month that it plans to invest an additional $100 billion in advanced semiconductor manufacturing in the US. This is in addition to its ongoing $65 billion investment in its manufacturing operations in Phoenix, Ariz.
- “They said the reason was No. 1, the election on Nov. 5. And No. 2, the tariffs,” Trump said. “They don’t want to pay the tariffs. And the way they’re not paying it is to build their plants here.”
- Similar to Apple and other Big Tech players, semiconductor stocks also dropped in after-hours trade with Nvidia falling 5% while Broadcom (AVGO) and Intel (INTC) dropped 5% and 4%, respectively.
- Tech stocks sold off following Trump’s sweeping tariff announcements. Apple (AAPL) led the declines as shares fell over 7% in after-hours trading.
- Apple’s overseas production hubs are particularly vulnerable, given the iPhone maker’s presence in countries like China, Vietnam, and India. These countries will face 34%, 46%, and 26% tariffs, respectively.
- “Apple produces basically all their iPhones in China, and the question will be around exceptions and exemptions on this tariff policy if those companies are building more operations, factories, and plants in the US like Apple announced in February,” Wedbush analyst Dan Ives said in a note to clients on Wednesday.
- Chip stocks also faced significant pressure, given the exposure to China and Taiwan supply chains. Nvidia (NVDA) stock slipped 5%, while TSMC (TSM) and Broadcom each dropped around 5%.
- “The worry will be around pricing and margin impacts along with what this means for the global supply chain looking forward,” Ives said.
- For now, the analyst believes major negotiations will happen over the coming months as companies attempt to navigate “this new world of tariffs.” Until then, he warned, “tech stocks will clearly be under major pressure.”
- President Trump surprised markets again on Wednesday, announcing steep reciprocal tariffs on a range of trading partners in addition to a “baseline” reciprocal tariff rate of 10% in a move that sent markets tumbling.
- “The tariffs were definitely worse than we had anticipated,” Deutsche Bank senior US economist Brett Ryan told Yahoo Finance.
- For example, Chinese imports are set to be hit by a 34% tariff while imports from the European Union will be dealt 20% tariffs. Trump said the tariff calculations were actually only “half” of what they could’ve been had the administration chose to match White House estimates of how other countries tariff the US.
- Stocks sold off sharply following Trump’s announcement.
- The decline in US stock futures was led by Nasdaq 100 futures, which were down more than 4.5% near 6:15 p.m. ET. S&P 500 futures were down 3.5% while contracts tied to the Dow were off closer to 2.2%.
- Read more here.
