Market Update: Tariff Concerns Hit Stocks Across Multiple Sectors
U.S. premarket trading is showing significant declines across various sectors, primarily due to investor apprehension surrounding the recent tariff policy introduced by President Donald Trump. This uncertainty extends to automakers, tech giants, financial institutions, and cryptocurrency-related stocks.
Automakers Face Large Declines
Legacy car manufacturers are experiencing steep drops as concerns about the unresolved tariff situation grow. Key stocks include:
- Stellantis: Down over 9%
- Ford: Decreased by nearly 3%
- General Motors: Fell 5% after Bernstein downgraded their stock to underperform.
Tesla also saw a nearly 7% decline, continuing a troubling trend where the stock has plummeted more than 40% since the start of 2025. Factors contributing to Tesla’s decline include supply chain disruptions linked to tariffs and political backlash surrounding CEO Elon Musk’s activities. Notably, bullish analyst Dan Ives has reduced his price target for the electric vehicle manufacturer, citing “self-created brand issues.”
Big Tech Companies Decline
Shares of major technology companies are following suit, largely in response to fears sparked by the tariff announcement:
- Apple: Down 4%
- Nvidia: Lost 6%
- Alphabet: Dropped over 2%
- Microsoft: Declined by more than 2%
- Amazon: Fell over 2%
- Meta: Decreased nearly 4%
Cryptocurrency Stocks Struggle
Stocks tied to Bitcoin are facing difficulties as the cryptocurrency itself has dipped below $77,000. This decline has led to:
- Coinbase: Down approximately 9%
- MicroStrategy: Fell by more than 10%
- MARA Holdings: Dropped over 11%
- Riot Platforms: Plummeted more than 9%
Bank Stocks in Recession Fears
Major banking institutions are also experiencing a downturn. There is growing concern about potential economic recession related to the new tariffs:
- JPMorgan Chase: Down nearly 4%; CEO Jamie Dimon noted tariffs could drive inflation and negatively impact the U.S. economy.
- Citigroup: Fell over 4%
- Morgan Stanley: Dropped more than 4%
- Goldman Sachs: Saw a downturn of 5% following a Wall Street downgrade.
Impact on Other Sectors
Shares of Palantir, known for its defense technology, have declined over 9%, following last week’s market sell-off. Additionally, U.S.-listed Chinese companies are facing negative impacts:
- Alibaba: Down more than 8%
- JD.com: Fell over 8%
- Bilibili: Decreased by over 8%
- PDD: Lost more than 6%
- Weibo: Retreated over 4%
International ETFs and Retail Highlights
International equity funds are also impacted. For instance, the iShares MSCI Taiwan ETF decreased more than 6%, while the iShares MSCI China ETF slid over 5%. In contrast, Dollar Tree has found itself bucking the trend, with shares rising nearly 1% after Citi upgraded it to “buy,” labeling it a “dark horse winner” amid global trade challenges.
Machinery Sector Concerns
The machinery market is not exempt from tariff worries. Key players like Caterpillar, United Rentals, and Cummins each experienced declines exceeding 4%, while Paccar saw a nearly 3% drop. UBS has downgraded all these companies to a selling recommendation, expressing concerns over possible demand destruction due to rising costs from tariffs.
Conclusion
As market participants digest the ramifications of the newly implemented tariffs, volatility across multiple sectors appears inevitable. Investors are advised to remain vigilant and informed as further developments unfold.