A trader sporting a Trump hat was seen working on the trading floor of the New York Stock Exchange in a photo taken on November 6, 2024.
The S&P 500 experienced a significant 6.0% drop on April 4 following China's imposition of tariffs in response to President Trump's tariff announcement affecting U.S. goods. This led to concerns about global economic growth and supply increases, causing a decline in oil prices and impacting stocks in the oil and gas sector negatively.
There was a rise in shares of homebuilders as interest rates decreased due to the uncertain economic outlook.
The U.S. stock market indices faced heavy losses for two consecutive days amidst China's retaliation against President Trump's tariff actions. Trade tensions overshadowed positive signs in the jobs report, showing higher job gains but an increased unemployment rate.
On the final day of a volatile trading week, the S&P 500 dropped by 6.0%, the Dow closed down by 5.5%, and Nasdaq by 5.8%.
The implementation of China's tariffs had a negative impact on various industries. GE HealthCare, a medical technology company that spun off from General Electric in 2023, experienced a 16.0% decline in its stock price, with China accounting for 12% of its sales in 2024. The pressure on oil prices was due to concerns about trade tensions affecting global economic growth and OPEC+ production increases. This led to a 14.4% drop in APA Corp.'s shares and a 13.3% decline in Baker Hughes' shares.
Other commodities were also affected by the global economic uncertainty, with copper futures and gold prices experiencing a decrease. Freeport-McMoRan, which produces these metals, saw a 13.0% loss in its shares.
Analysts identified Micron Technology as a semiconductor stock that could be significantly impacted by China's tariffs, leading to a 12.9% drop in its shares. They highlighted the vulnerability of companies like Micron with lower margins to the effects of the tariffs, warning of a potential downside risk of 20% or more for semiconductor stocks in case of a recession.