Tariffs Trigger Market Drop: On 3 April, after the US President announced reciprocal tariffs, the US stock market index Dow Jones fell 1,679 points (3.98%) to close at 40,545.
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Tariffs Trigger Market Drop
At the same time, the S&P 500 index fell by 274 points (4.84%). It came down to the level of 5,450. The Nasdaq Composite closed with the maximum fall of 1,050 points (5.97%). Shares of companies like Nike, Boeing, Apple and Amazon fell by up to 15%. Shares of all sectors like airline, clothing, retail, technology, bank fell.
The market cap of the US market fell by about $2 trillion. Due to this decline, the market cap of the US stock market fell by about $2 trillion (Rs 170 lakh crore). The market cap of the S&P 500 index was $47.681 trillion on 2 April, which has come down to about $45.373 trillion on 3 April.
Sector-Wise Decline in Airlines: Tariffs Trigger Market Drop
Airlines were expected to make good profits this year. However, if Americans have to pay higher prices for essential items, it could impact their travel budget.
- United Airlines- down 15.6%
- American Airlines- down 10.2%
- Delta Airlines- down 10.7%
Clothing and Shoes
Most major shoe and clothing makers make their products outside the US. This means they must pay higher tariffs on all items that are shipped back into the country to be sold here.
- Nike – down 14.4%. Under Armour – down 18.8%
- Lululemon – down 9.6%
- Ralph Lauren – down 16.3%
- Levi Strauss – down 13.7% Retailers
- Amazon – down 9%
- Target – down 10.9%
- Best Buy – down 17.8%
- Dollar Tree – down 13.3%
- Kohl’s – down 22.8%
Technology sector Companies that make and sell computers, smartphones, and other technology import many of their components from abroad. Some companies even make their entire product abroad. That means they have to pay tariffs when those products are shipped back to be sold to customers.
- Apple – down 9.2%
- HP – down 14.7%
- Dell – down 19%
- Nvidia – down 7.8%
Bank If the economy slips into a recession, households and businesses will be less likely to borrow money because demand for products and services will fall.
- Wells Fargo – down 9.1%
- Bank of America – down 11.1%
- JPMorgan Chase – down 7%
Jay Chavda He is the Founder and Writer of businesspulsecare.com. He is an I.T Engineer, Freelancer, Businessman. He posts Business, Stock/Share Market, Finance Related News and updates on the website. 🔗