Editor
The tariff impact on stocks dominated midday trading as U.S. equities slumped sharply, reigniting fears over escalating trade tensions and their ripple effects on corporate earnings. The Dow Jones Industrial Average, S&P 500, and Nasdaq Composite all fell, with sector leaders like FedEx (FDX) and Nike (NKE) fueling declines after issuing profit warnings tied to trade policy uncertainties.
How Tariff Impact on Stocks Drove FedEx and Nike Downgrades
FedEx (FDX) plummeted as the worst performer in the S&P 500 after slashing its annual forecast, citing tariff impact on stocks and broader “weakness in the U.S. industrial economy.” Similarly, Nike (NKE) shares sank after the apparel giant flagged slowing demand linked to tariffs and softer consumer sentiment. Analysts warn that prolonged trade disputes could pressure margins across retail and logistics sectors.
Tariff Impact on Stocks: Housing and Defense Sectors React Differently
Lennar (LEN) shares slid as the homebuilder highlighted a cooling housing market exacerbated by rising material costs—a byproduct of tariffs. Meanwhile, Boeing (BA) surged after securing a Pentagon contract to build a next-gen fighter jet, overshadowing concerns about tariff impact on stocks in the aerospace sector. Lockheed Martin (LMT), which lost the bid, fell sharply.
Tech and EV Stocks Defy Broader Market Weakness
Tesla (TSLA) bucked the trend, rising after CEO Elon Musk reassured employees about the automaker’s growth trajectory despite his political engagements. Super Micro Computer (SMCI) also climbed on a JPMorgan upgrade, driven by optimism around Nvidia’s (NVDA) AI chip shipments.
Commodities and Currencies Reflect Risk Aversion
Gold prices dipped as investors shifted focus to equities, while oil futures held steady. The U.S. dollar strengthened against the euro and pound, though cryptocurrencies like Bitcoin traded lower amid broader risk-off sentiment.
