U.S. stock index futures tumbled on Thursday after President Donald Trump's sweeping tariffs on major trade partners heightened fears of an all-out trade war that could push the global economy into a recession.
At 7:50 a.m. ET, Dow e-minis were down 1198 points, or 2.82%, S&P 500 e-minis were down 191.75 points, or 3.36%, and Nasdaq 100 e-minis were down 766.75 points, or 3.88%.
Apple, Amazon, Meta, Alphabet, Microsoft - Many big U.S. technology stocks were falling following Trump’s tariffs announcement on Wednesday. Apple, which produces most of its iPhones in China, was down 7.6%, Amazon.com dropped 6.4%, Meta Platforms declined 4.7%, Alphabet dipped 2.9%, and Microsoft slid 2.7%.
Wedbush analyst Dan Ives called the tariffs announcement “worse than the worst case scenario” that Wall Street was fearing. He added that tech stocks “will clearly be under major pressure on this announcement as the worries about demand destruction, supply chains, and especially the China/Taiwan piece of the tariffs.”
Nvidia, AMD, TSMC, Qualcomm - Semiconductor stocks traded lower even as the White House said the tariffs on Taiwan wouldn’t apply to chips. Nvidia was down 5.8%, AMD fell 5.5%, TSMC fell 5.2%, and Qualcomm fell 4.1%.
Tesla - Tesla was down 6% following the tariffs announcement. The leading U.S. maker of electric vehicles closed up 5.3% on Wednesday following a Politico report that said Tesla CEO Elon Musk plans to step away from his government role in the coming weeks. The stock had traded lower in the session after the company’sfirst-quarter deliveriesdropped 13% from a year earlier and widely missed estimates.
Nike, Deckers Outdoor - Sneaker and apparel maker Nike declined 9.9%. Factories in Vietnam made about 50% of Nike footwearand 28% of its apparel products in fiscal 2024. Deckers Outdoor, the maker of Hoka sneakers and Ugg boots, dropped 12.3%.
Lucid - Lucid Group delivered 3,109 vehicles in the first quarter, and produced 2,212 vehicles, plus more than 600 additional vehicles in transit to Saudi Arabia for final assembly. The EV company also said it planned to offer $1 billion of convertible senior notes. The stock declined 5%.
Dollar Tree, Five Below, Walmart, Costco, Target - Dollar Tree, which receives the majority of its direct imports from China, was down 11%. The company said last month it wasimplementing strategies to mitigate the blow from tariffs. Five Below fell 16%.
Mega retailers fell on the tariffs news. Walmart was down 4.7%, Costco Wholesale fell 3%, and Target was off 5.8%. The companies have warned that tariffs will lead to higher prices on their products.
Restoration Hardware - RH sank 27.8% after fiscal fourth-quarter earnings missed analysts’ estimates and the home-furnishings company issued revenue forecastS for the first quarter and current fiscal year that also were shy of expectations. “While we expect a higher-risk business environment this year due to the uncertainty caused by tariffs, market volatility and inflation risk, we believe it’s important to separate the signal from the noise,” said CEO Gary Friedman, who added RH has been “operating in
the worst housing market in almost 50 years.”
Penguin Solutions - Penguin Solutions was rising 2% after fiscal second-quarter adjusted earnings and revenue at the company, which provides solutions for the computing, memory and LED markets, topped Wall Street estimates. Penguin Solutions said it expects fiscal-year adjusted earnings of $1.60, a share, plus or minus 10 cents, up from a previous forecast of $1.50, plus or minus 20 cents. Analysts had been expecting fiscal-year profit of $1.58.
Lyft - Lyft declined 11% to $11.58. Analyst at BofA Securities downgraded the ride-sharing company to Underperform from Buy and reduced the price target to $10.50 from $17.50, the Fly reported.
President Donald Trump imposed the steepest American tariffs in a century as he steps up his campaign to reshape the global economy, sparking threats of retaliation and a selloff in markets around the world.
Trump announced Wednesday he will apply at least a 10% tariff on all exporters to the US, with even higher duties on some 60 nations, to counter large trade imbalances with the US. That includes some of the country’s biggest trading partners, such as China — which now faces a tariff of well above 50% on many goods — as well as the European Union, Japan and Vietnam.
The move marks a dramatic escalation in Trump’s trade war, one that risks triggering retaliation from other countries and upends calculations for businesses and consumers at home. China and the EU, America’s largest trading partner, both said they were preparing to take countermeasures in response.
President Donald Trump’s 25% tariff on US auto imports took effect shortly after midnight in Washington in a move expected to dramatically increase costs and upend industry supply chains.
Certain auto parts will also be hit by an equivalent levy no later than May 3 under a plan Trump announced last week. The measures are expected to potentially add thousands of dollars to new-vehicle prices and weigh on industry sales.
The implementation came after Trump on Wednesday said the US would impose a 10% tariff on all countries that export to the US, plus additional duties targeting about 60 nations. Although imported cars and parts are exempt from those so-called reciprocal tariffs, carmakers are already reeling from Trump’s escalating trade war.
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