Stock Market Today- Stock Market Hits by Trump’s Tariff Plan: S&P 500, Nasdaq End Week in Red
Stock Market Today– Wall Street experienced a significant pullback on Friday, with stocks giving up earlier gains and closing broadly lower after President Donald Trump’s announcement on new tariffs. According to Tokenomist, the market saw a drop as the White House confirmed the imposition of promised tariffs on major U.S. trading partners. The tariffs, set to take effect on Saturday, will impact imports from Canada, Mexico, and China.
Trump’s Tariff Announcement Creates Market Uncertainty
President Trump’s decision to impose 25% tariffs on goods from Canada and Mexico, and 10% on Chinese imports, sent shockwaves through the market. As Sam Stovall, chief investment strategist at CFRA, pointed out, “If Trump says it’s something that could happen by tomorrow, that doesn’t leave a lot of room to move.” The announcement caused significant uncertainty, with tariffs threatening to escalate trade tensions and potentially affect key industries.
Despite earlier solid gains, the major indexes reversed course and posted their first weekly losses in three weeks. The S&P 500 fell 0.5%, and the Nasdaq composite dropped 0.3%. Meanwhile, the Dow Jones Industrial Average closed 0.8% lower.
The Impact of Rising Tariffs on U.S. Companies
With tariffs set to target major trading partners, companies are bracing for the potential impact on their bottom lines. As of now, the White House has not provided information on whether there will be any exemptions. The lack of clarity leaves many businesses uncertain about potential cost increases, which could eventually be passed on to U.S. consumers.
Among the hardest-hit sectors were technology and energy companies, which saw substantial declines on Friday. Apple, for instance, reversed earlier gains and closed down 0.7%, despite reporting stronger-than-expected profits for the latest quarter. Although Apple’s revenue from services, including its app store and AppleCare, reached a record high, iPhone sales dipped, which contributed to its stock’s decline.
Tech Stocks Tumble Amid AI Concerns and Tariff Uncertainty
The technology sector has been particularly volatile in light of Trump’s tariff announcement and the ongoing artificial intelligence (AI) boom. KLA, a supplier to the electronics industry, initially rose after exceeding analyst expectations for profit and revenue. However, the stock eventually closed down 0.6%. KLA’s positive results had been attributed to investments in high-performance computing and AI. But global tech stocks have been struggling, particularly after Chinese startup DeepSeek claimed it developed a large language model capable of competing with the best in the world, without relying on expensive chips. This disruption sparked concerns that the demand for AI chips and data centers might not be as strong as previously thought.
Nvidia, a company at the forefront of the AI boom, also saw its stock drop by 3.7%, contributing to a 15.8% weekly loss. These declines indicate how sensitive tech stocks are to the uncertainty surrounding both the AI industry’s trajectory and the economic effects of rising tariffs.
Bond Yields and Inflation Concerns
The tariffs and their potential impact on inflation have also led to a rise in long-term bond yields. The 10-year U.S. Treasury yield climbed to 4.54% from 4.52% on Thursday, signaling concerns that higher tariffs could drive inflation upward. As Sam Stovall explained, “It’s not the safe haven that it normally is because these tariffs might result in higher inflation and the need for the Fed to remain on pause for longer or to reverse course and raise rates.”
These fears have caused the market to react nervously. Short-term U.S. government bond yields mostly fell, but the trend of rising yields since September shows that the economy has remained more resilient than expected, keeping inflation concerns alive. The Federal Reserve recently left its benchmark interest rate unchanged, signaling caution while awaiting more clarity on how Trump’s policies will affect inflation and the broader economy.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.
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