Tariffs caused major stock drops, but Johnson & Johnson, Lululemon, DR Horton, and Lennar saw gains.

From Yahoo Finance: 2025-04-07 11:40:00

President Trump’s reciprocal tariffs caused significant drops in U.S. stocks, with the S&P 500 losing 6%, the Dow Jones falling 5.5%, and Nasdaq dropping 5.8%. This led to the largest two-day shareholder value wipeout on record, according to NBC News and MarketWatch.

Pharmaceutical company Johnson & Johnson saw a 2.7% rise in shares on Thursday, but dropped over 4% on Friday. The effects of tariffs are expected to have minimal impact on pharmaceutical manufacturers, per Reuters.

Athleisure company Lululemon’s stock climbed to $264 following promising tariff discussions with Vietnam, where it manufactures clothing. Nike also began to rebound, closing just under $58, with 44% of its sportswear made in Vietnam.

Homebuilder DR Horton Inc. saw a rise past its previous high to $127 on Friday, benefiting from tariff exceptions for Canada and Mexico. Lennar Corporation, a Florida-based builder, also began to bounce back, up 2.43% on Friday.

As the market remains volatile, it’s important for investors to heed Warren Buffett’s advice to be cautious when others are greedy and bold when others are fearful. The stock market winners on Friday may not hold up by Monday’s close, so caution is advised. 1. The US economy added 943,000 jobs in July, surpassing expectations and driving the unemployment rate down to 5.4%. This marks a significant improvement in the job market as the country continues to recover from the effects of the pandemic.

2. In a landmark ruling, a federal judge has ordered the Biden administration to reinstate a controversial Trump-era policy that required asylum seekers to wait in Mexico while their cases were processed. The decision has sparked debate over the US immigration system.

3. The Tokyo Olympics have come to a close, with the United States finishing at the top of the medal table with a total of 113 medals, including 39 golds. The Games were marked by new records, emotional moments, and the ongoing challenges of hosting an event during a pandemic.

4. Apple has announced plans to scan iPhones for images of child sexual abuse, a move aimed at combating online child exploitation. The technology has sparked concerns about privacy and government surveillance, with critics warning of potential misuse and infringement on civil liberties.

Read more: 5 Stocks That Went Up Since the Tariff Announcements