This past week culminated in drastic declines across major stock indices, marking it as one of the most challenging periods for investors since the early 2000s. Speculation surrounding tariffs, which were announced mid-week, has contributed to heightened market volatility.

Market Overview

Initially, there were optimistic expectations regarding the announcement of reciprocal tariffs announced on Wednesday. However, the magnitude and extensive nature of these tariffs surprised many market participants, pushing the U.S. effective tariff rate to its highest in over a century. Analysts caution that such significant changes may hinder economic growth and potentially lead to a resurgence of inflation.

Weekly Performance

• The S&P 500 experienced a 10.5% decline over Thursday and Friday, representing its worst two-day performance since March 2020 and ranking as the third worst since 2000.
• For the week, the S&P 500 posted a 9.1% loss, making it the seventh-worst weekly performance in the last 25 years.
• The Dow Jones Industrial Average fell by 7.9% over the week, marking its sixth-worst weekly decline of the 21st century.
• On a particularly volatile Friday, the Dow lost 2,231 points, its third-largest single-day point drop on record.
• The Nasdaq Composite also suffered, with an 11.4% drop following the tariff announcement, reflecting its worst two-day performance since March 2020.

Individual Stock Impacts

Several significant companies faced substantial losses:

• Apple (AAPL), the largest company by market capitalization, saw a 15.9% decline since the previous Wednesday, marking its worst two-day drop since September 2008, leading to more than half a trillion dollars erased from its market value.
• Throughout the S&P 500, 31 companies lost more than 20% of their value, with nearly half the index, or 247 companies, experiencing a decline of 10% or more.
• Only a minority of stocks managed to rise; specifically, just 21 stocks finished the week with gains, mainly in healthcare and utilities. On Friday, a mere 14 stocks saw positive movement.
• Nike (NKE) was a rare bright spot, rising by 3% on Friday despite ending the week down 10%.

Interestingly, even firms with minimal direct exposure to tariffs faced declines. Palantir (PLTR) dropped 14%, while DoorDash (DASH) and Netflix (NFLX) fell by approximately 11% and 8%, respectively.