Overview of Market Trends

In today’s midday trading session, concerns over new tariffs imposed by the Trump administration significantly impacted various sectors. Major bank stocks, technology leaders, and property investments faced notable declines.

Banking Sector Under Pressure

The banking industry saw substantial sell-offs, with key players reporting declines exceeding 7%. JPMorgan Chase, Morgan Stanley, and Wells Fargo each fell more than 7%, emphasizing market apprehension about a potential economic slowdown. Other notable declines included:

• Goldman Sachs: down 7.8%
• Citigroup: down 7.9%

Technology Giants Struggling

Major technology companies, often favored by retail investors, could not escape the downturn. Tesla, known for its electric vehicles, suffered a sharp decline of 10.4%, while Palantir Technologies experienced an 11.5% drop.

Real Estate Sector Weakens

Property stocks also took a hit, reflecting sensitivity to consumer spending trends. Prologis saw its shares drop by approximately 3.3%, while Simon Property Group fell by 4.7%.

Impact on Apple and China-Focused Funds

Apple’s stock fell by 7.3%, largely attributed to retaliatory tariffs from China, which heavily influences the company’s production capabilities. Evercore ISI estimates indicate that about 80% of Apple’s production is based in China, with 90% of iPhones assembled there.

Furthermore, several China-focused exchange-traded funds suffered considerable losses following an announcement of a 34% tariff on U.S. imports from the Chinese government. Notable declines included:

• KraneShares CSI China Internet ETF (KWEB): down over 9%
• iShares MSCI China ETF (MCHI): down 6.8%
• iShares China Large-Cap ETF (FXI): down 6.8%

Semi-Conductors Feeling the Strain

Chipmakers with significant exposure to the Chinese market faced declines as well. Marvell Technology’s shares dropped about 11.2%, while Intel decreased by 11.5%. Other semiconductor companies like Nvidia and Broadcom weren’t spared, seeing reductions of 7.4% and 5%, respectively.

Manufacturing Sector Affected

Manufacturers of agricultural and construction equipment also recorded losses due to changing trade dynamics. Key manufacturers saw declines including:

• Deere: down 3.9%
• CNH Industrial: down 4.9%
• Caterpillar: down 5.8%

UBS analyst Steven Fisher noted that the prevailing trade dynamics pose challenges for the agricultural sector, particularly for farm machinery companies reliant on free trade.

Aerospace Industry feeling the pinch

The aerospace sector faced significant losses, with Boeing’s stock dipping by 9.5% and GE Aerospace plunging 16.5%. The newly imposed tariffs are anticipated to elevate production costs for various aerospace products.

Energy and Casino Operators Decline

Shell’s shares fell by 8%, following the drop in U.S. oil prices to their lowest levels since 2021, triggered by tariff news. Casino operators in Macao also struggled, with Las Vegas Sands shares down by 8.4%, and both Wynn Resorts and MGM Resorts experiencing decreases of over 3.5%.