The Dow Jones Industrial Average (^DJI 1.07%) index started to crack in March, falling 4.2%, with 73% of its 30 blue chip stocks ending the month in the red. Nike (NKE 0.74%), Walt Disney (DIS 1.48%), and Nvidia (NVDA 3.86%) were the worst-performing Dow stocks in March, and they've fallen further this month.
Nike stock plunged 20.1% to multiyear lows in March after reporting a 9% and 30% drop in revenue and earnings per share (EPS), respectively, for its 2025 fiscal third quarter, which ended Feb. 28, 2025. Sales fell the sharpest at 17% in China, and Nike's gross margin slipped to 41.5% from 44.8% as it doled out discounts to clear old inventory.
Nike expects its current-quarter revenue to drop by a mid-teens percentage, but tariffs pose a new threat. In fiscal 2024, 50%, 27%, and 18% of Nike's namesake brand footwear were produced in Vietnam, Indonesia and China, respectively, so having to pay more to import goods from those countries to the U.S. could hurt Nike.
Walt Disney stock sank 13.3% in March as the Conference Board's consumer confidence index declined for the fourth straight month and consumer expectations for the economy sank to a 12-year low. A recession will hurt discretionary spending, and Disney's prospects.
Disney already reported a 5% drop in operating income from its U.S. theme parks in the 2025 fiscal first quarter ended Dec. 28. Although management projects high-single-digit adjusted EPS growth and high single-to-double digit operating income growth for 2025, investors fear things will get worse for the media and entertainment powerhouse before they get any better.
Nvidia's revenue surged 12% year over year in Q4, driven by record quarterly data center revenue. Nvidia also guided for nearly 65% growth in revenue for Q1, but fears of a slowdown sent the artificial intelligence (AI) stock tanking 13.2% in March.
On April 15, Nvidia said it expects to incur a charge of $5.5 billion in Q1 after the U.S. government mandated a license to export H20 chips to China. China is an important market, and the uncertainty has continued to weigh on Nvidia's stock price.
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