Self-goal? Trump tariffs hit Wall Street - Apple shares 8.5% down, Amazon shares slump 7%

Stocks on Wall Street tumbled on Thursday morning, in response to a worldwide market downturn. President Donald Trump's recent tariffs declaration has ignited concerns of a trade conflict and potential economic deceleration. 

The Dow Jones Industrial Average dropped by 1,111.20 points (or 2.66%) to 41,103.63 at 09:30 a.m.. In the same period, the S&P 500 saw a decline of 188.27 points (or 3.32%). Additionally, the Nasdaq Composite experienced a decrease of 789.63 points (or 4.50%), ending at 16,811.42.

The market turbulence was attributed to the implementation of a new baseline 10 per cent tariff on imported goods, as well as reciprocal tariffs imposed on various countries that were deemed to have unfair trade barriers by President Trump. These measures caused significant concern among traders due to their severity.

Apple experienced more than 9% decline as a result of the tariffs imposed on China, where much of its manufacturing takes place. Amazon.com, Microsoft, and Nvidia also saw drops of over 7%, 1.8%, and 3.5%, respectively.

Apple Inc experienced a reduction of 20.88 points, representing a 9.33% decrease, with the stock price settling at $203.01.
NVIDIA Corp saw a decline of 6.03 points, equivalent to a 5.46% decrease, with the stock price closing at $104.39.
Meta Platforms Inc recorded a drop of 43.53 points, indicating a 7.45% decrease, with the stock price ending at $540.40.
Amazon.com Inc suffered a loss of 13.78 points, reflecting a 7.03% decrease, with the stock price finishing at $182.23.

President Trump's trade levies had a particularly strong impact on Asia, with China facing a 34% reciprocal tariff, Japan 24%, South Korea 25%, and Vietnam 46%.

In response to the tariffs, Vietnamese stocks plummeted by 6.7%. Companies like Nike, Adidas, and Puma, which heavily rely on sourcing from Vietnam and other Asian countries, also experienced significant losses of up to 10%.

Several large US retailers, such as Walmart, Amazon, and Target, rely heavily on suppliers in Asian countries, particularly China. Due to potential price increases, these retailers saw their stocks decline by 3% to 7%.

Sportswear companies like Lululemon experienced a significant drop of 10.1%, while Nike fell by 10.9% due to higher tariffs imposed on their sourcing partners.

The S&P 500 retail index decreased by 5.4%, reaching its lowest point since September 2024.

Several prominent Wall Street financial institutions, such as JPMorgan Chase & Co, Citigroup, and Bank of America Corp, experienced decreases in stock value ranging from 5.3% to 8%. Concerns about economic risks have led to a decline in equity prices, as well as a slow recovery in mergers and acquisitions (M&A) and initial public offerings (IPOs). This trend has raised worries about potential reductions in investment banking revenue. Additionally, lower consumer confidence may lead to decreased spending and loan demand. The S&P 500 banks saw a 6% decrease in stock value, while the KRW Regional bank index dropped by 5.3%.