Failed Rebound Attempt for Stocks
Stocks tried to make a comeback on Tuesday, gaining about 4% after days of decline, but they ended the day decidedly down as the sell-off continues.
The Nasdaq ended the day Tuesday down 2.15%, continuing days of downward movement that have marked some of the worst stock numbers since pandemic days. The Dow Jones lost 320 points, falling 0.84%, and the S&P 500 dropped 1.57%.
The major reason for the bearish market is President Doanld Trump’s tariffs, with fear that retaliatory tariffs from various countries will cause prices to rise and consumers to buy less. That is four days of decline as a result of tariff concerns, and the S&P 500 has suffered the most with a nearly 19% drop from its high point in February.
China has made public its commitment to increase retaliatory tariffs on any goods from the United States. That news has already sunk stock numbers for Wednesday morning and is sure to see continued negative results across the various trading sessions for the day.
Tremendous Losses for Many Stocks
A number of important stocks have fallen as a result of tariff fears, and we have seen the biggest losses in the tech markets. These are the areas of industry most likely to be seriously affected by these tariffs, although the knockdown effect is sure to hit every industry as a result.
Tesla (TSLA) lost nearly 5% on Tuesday, reeling from a combination of declining sales globally, Elon Musk’s divisiveness, and fear that tariffs will increase costs to customers.
Amazon (AMZN) stock dropped 2.62% on Tuesday, and the major online retailer is likely to be hit partially hard by the tariffs. This stock could slurp[rise investors, though, as we saw during the last economic depression, the company did very well. Many consumers turned to the online retailer for comfort shopping and easy access to goods. The situation now is not identical to the pandemic when people were shut indoors, but there are some similarities in terms of consumer mood and economic decline.
Apple (AAPL) took one for the larger hits on Tuesday, falling 4.98%. This company has the world’s largest market capitalization, but they are sure to experience severe price hikes and sales decreases as tariffs go into effect.
We should continue to see stock numbers drop throughout the rest of the week, with little good news on the horizon to rescue the market. However, there will likely be some price corrections occur and cause the stock numbers tick up a bit. Once the tariff numbers are processed and fears diminish in the face of reality, the situation might not be quite so dire for the market.
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