Friday, May 9, 2025

Dow and S&P 500 See Major Losses as Tariffs Hit U.S. Economy

AP Newsis
AP Newsis

The New York Stock Exchange extended its losing streak for a second day on Tuesday, as investor sentiment worsened after U.S. President Donald Trump’s tariffs on Canada, Mexico, and China went into effect.

Starting that day, the Trump administration imposed a 25% tariff on goods from Mexico and Canada and an additional 10% tariff on Chinese products. Combined with the previous 10% tariff imposed last month, the total tariff on Chinese goods is 20%.

Tesla shares plummeted 4.4% due to concerns about CEO Elon Musk’s political ties, while NVIDIA rebounded with a 1.7% gain.

Meanwhile, stocks of banks, airlines, and cruise companies saw particularly steep declines.

Second Consecutive Day of Losses

All three major Wall Street indices—the Dow Jones Industrial Average, S&P 500, and Nasdaq—fell for the second straight day.

On this day, the Dow saw the most significant decline.

The Dow, comprising 30 large-cap stocks, plunged 670.25 points (1.55%) to 42,520.99.

The S&P 500, a broader market gauge, shed 71.57 points (1.22%) to close at 5,778.15.

The tech-heavy Nasdaq fared slightly better, falling 65.03 points (0.35%) to 18,285.16.

Despite initial drops of around 1.8%, a late-day rally in some tech stocks helped narrow the losses.

Dow’s Significant Drop

Financial, airline, and consumer goods stocks led the Dow’s decline.

Credit card company American Express tumbled $12.02 (4.07%) to $283.47, while Goldman Sachs Group, Inc. fell $24.12 (3.99%) to $581.44.

JPMorgan Chase’s stock dropped $10.37 (3.98%) to $250.25, and Visa’s dropped $9.59 (2.65%) to $352.23.

Though not part of Dow, Wells Fargo also fell $3.73 (4.84%) to $73.30, and Morgan Stanley dropped $7.41 (5.74%) to $121.72.

Boeing, the aircraft manufacturer, plummeted $11.16 (6.56%) to $158.90.

The decline was due to fears that tariffs could reduce consumer travel demand.

Office supplies and consumer goods manufacturer 3M also fell sharply, losing $7.56 (4.93%) to close at $145.86.

Travel Stocks Hit Turbulence

The travel sector was also severely impacted.

Concerns arose that as tariffs push up the prices of essential goods, consumers’ discretionary income would decrease, potentially curbing travel demand.

Airline and cruise line stocks took a nosedive.

United Airlines (UAL) dropped $5.46 (5.96%) to $86.21, while Delta Air Lines plummeted $3.76 (6.43%) to $54.69.

The U.S. Global Jets ETF, which invests in U.S. airlines, fell by $0.81 (3.38%) to $23.12.

In the cruise sector, Royal Caribbean sank $14.10 (5.85%) to $227.02, and Carnival fell $1.35 (5.80%) to $21.91.

Automakers Shift into Reverse

The automotive sector also felt the heat, as fears grew that Trump’s tariffs could disrupt the large North American automotive industry supply chain.

Tesla faced additional pressure amid speculation that Musk’s political connections could make the company a target for retaliatory measures.

While Tesla’s domestic production is less affected by tariffs, negative sentiment towards Musk could spark consumer boycotts.

Tesla shares fell by $12.61 (4.43%) to $272.04.

Detroit’s Big Three automakers also saw sharp declines.

General Motors dropped $2.16 (4.56%) to $45.22, while Stellantis, the joint venture between the U.S., Italy, and France, dipped $0.54 (4.38%) to $11.80.

Ford, however, which was expected to be less affected by the tariffs, only dropped by $0.27 (2.88%) to $9.12.

Nvidia and Alphabet Rebound

Nvidia and Alphabet managed to post gains.

Nvidia climbed $1.93 (1.69%) to $115.99, while Alphabet rose $3.91 (2.34%) to $170.92.

Microsoft saw a modest gain of $0.12 (0.03%) to close at $388.61.

Among the Magnificent 7 stocks, these three were the only ones to close higher.

Hot this week

Disney’s Abu Dhabi Dream: Why It’s Avoiding Investment Risks

Disney plans its seventh theme park in Abu Dhabi, partnering with a local company to minimize investment risks while collecting royalties.

Disney Shares Skyrocket: The Theme Park Deal That Has Investors Buzzing

New York stocks rebounded after a volatile day, with NVIDIA and Disney shares surging on positive news, while EV stocks fell sharply.

WTI Oil Dips After Fed’s Unexpected Silence on Rate Cuts

Oil prices fell after the Fed's steady interest rate decision, with Brent crude at $61.12 and WTI at $58.07 per barrel.

Businesses Race to Import Ahead of Trump’s Tariffs, Breaking Trade Records

U.S. trade deficit hits a record high in March as imports surge before tariffs; growth expected to decline amid trade tensions.

Markets Dip as Fed Kicks Off Key Meeting, Trade Talks Gain Steam

U.S. stock indices fell as investors await the Fed's interest rate decisions and trade negotiations, while Tesla and biotech stocks struggled.

Topics

Disney’s Abu Dhabi Dream: Why It’s Avoiding Investment Risks

Disney plans its seventh theme park in Abu Dhabi, partnering with a local company to minimize investment risks while collecting royalties.

Disney Shares Skyrocket: The Theme Park Deal That Has Investors Buzzing

New York stocks rebounded after a volatile day, with NVIDIA and Disney shares surging on positive news, while EV stocks fell sharply.

WTI Oil Dips After Fed’s Unexpected Silence on Rate Cuts

Oil prices fell after the Fed's steady interest rate decision, with Brent crude at $61.12 and WTI at $58.07 per barrel.

Businesses Race to Import Ahead of Trump’s Tariffs, Breaking Trade Records

U.S. trade deficit hits a record high in March as imports surge before tariffs; growth expected to decline amid trade tensions.

Markets Dip as Fed Kicks Off Key Meeting, Trade Talks Gain Steam

U.S. stock indices fell as investors await the Fed's interest rate decisions and trade negotiations, while Tesla and biotech stocks struggled.

Crude Prices Surge as Diamondback Warns of U.S. Production Decline

Oil prices surged after Diamondback Energy's CEO warned of U.S. production decline, amid rising OPEC+ output and demand concerns.

From Zoo Clip to $500 Billion Giant: YouTube Turns 20

YouTube celebrates 20 years, valued at up to $550B, with over 20 trillion videos uploaded, and is set to surpass Disney in revenue.

Lip Filler Fail: Spanish Influencer Swells Up After Dissolving Treatment

A Spanish woman's lip filler dissolving experience went viral after severe swelling led to medical treatment for an allergic reaction.

Related Articles