From Yahoo Finance: 2025-04-03 03:07:00

Megacap U.S. tech companies like Apple and retail giants Walmart and Nike triggered a global market meltdown due to President Trump’s new tariffs, raising fears of increased costs across industries. The Dow Jones Industrial Average fell 3% and S&P 500 was down 4%. Tech hardware and semiconductors, including Apple, faced significant drops.

Trump’s tariffs marked a stark shift from pro-business policies, with analysts warning of potential global supply chain disruptions and recession risks. Apple could face $39.5 billion in tariff costs, impacting operating profit and EPS. PC and AI server makers like Dell and HP might see cost increases of 10%-25%, squeezing margins.

Major U.S. retailers such as Walmart, Amazon, and Target, heavily reliant on Asian suppliers like China, saw shares drop 1.5% to 11%. China faced a 54% tariff, impacting sportswear retailers like Lululemon and Nike. U.S. banks like JPMorgan Chase & Co and Citigroup fell 6% to 11% amid economic risk sensitivity.

Car manufacturers like Ford and General Motors dipped as auto tariffs loomed. Electric vehicle makers Rivian and Lucid saw declines. Tariffs could add $2,500 to $5,000 to American car prices, impacting consumer spending. Pharmaceuticals Pfizer and Johnson & Johnson were temporarily exempt from tariffs, but the industry remains cautious. Medical device firms are facing risks with tariffs on China, the EU, and Mexico. Energy stocks and crude prices dropped despite oil imports being exempt. Brent crude and U.S. WTI fell over 6%, impacting oil, refinery, and oilfield service stocks. APA, Devon Energy, Halliburton, and Valero saw significant losses. Investors fear a global economic slowdown and decreased demand growth due to aggressive tariff policies and OPEC’s output increases.

Read more: US tech, retail stocks lead rout after Trump’s tariff blow