Nike (NKE) shares are experiencing a pre-market plunge of 5.24% on Monday, continuing the downward trend from the previous trading session. This decline follows a significant 7.95% drop in Nike's stock price over the past 24 hours, as investors grapple with the implications of newly announced tariffs.

The sportswear giant's stock is under pressure due to President Trump's recent announcement of a blanket 10% tariff on all goods entering the U.S., with even higher "reciprocal" tariffs set to take effect on April 9. As a global brand with extensive international supply chains and markets, Nike is particularly vulnerable to these trade disruptions and the increased costs associated with tariffs, leading to concerns about the company's future profitability and global operations.

The negative sentiment surrounding Nike's stock is part of a broader market selloff, with futures pointing to another day of significant losses across major indices. Adding to the gloomy outlook, billionaire investor Bill Ackman has warned of an "economic nuclear winter" if the tariff situation is not resolved quickly, urging a 90-day timeout on the new trade measures. As trade tensions escalate, investors continue to reassess their positions in companies with significant exposure to international markets, contributing to the ongoing pressure on Nike's stock price.