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TMI BlogFear that Trump tariffs will spark recession wipes out more than USD 2 trillion in value from US stocksX X X X Extracts X X X X X X X X Extracts X X X X ..... Fear that Trump tariffs will spark recession wipes out more than USD 2 trillion in value from US stocks X X X X Extracts X X X X X X X X Extracts X X X X ..... est one-day drop since COVID-19 flattened the global economy five years ago. Banks, retailers, clothing, airlines and technology companies were among the hardest hit, with consumers expected to cut spending if tariffs lead to higher prices for goods and services. Many economists called the tariffs much worse than expected, and investors dumped shares in companies they predict will suffer most ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... from what is effectively a business tax. In many cases that tax will be passed on to consumers. If consumers pull back their spending because of higher prices, businesses will produce fewer goods and economic growth could stall or contract. Consumer spending makes up about 70 per cent of economic activity in the US “This is a game changer, not only for the US economy but for the global economy ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ," Olu Sonola, Fitch Ratings' head of US Economic Research, said in a report. "Many countries will likely end up in a recession.” With a drop of 4.8 per cent in the S&P 500, more than USD 2 trillion in value vanished, according to Howard Silverblatt, a senior index analyst at S&P Dow Jones Indices. Here's a breakdown of some of the market's worst performing sectors and companies on Thursday. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Airlines Airlines had been projecting a strong year for profits. However, if Americans are faced with higher prices for essentials, economists say that could put a crimp in their travel budgets. United Airlines, down 15.6 per cent American Airlines, down 10.2 per cent Delta Air Lines, down 10.7 per cent Clothing and shoes Most major shoe and clothing makers have their products m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ade outside of the US, meaning they will have to pay a tariff, or import tax, on all the goods that are shipped back into the country for sale here. Nike, down 14.4 per cent Under Armour, down 18.8 per cent Lululemon, down 9.6 per cent Ralph Lauren, down 16.3 per cent Levi Strauss, down 13.7 per cent Retailers Big box and online retailers also import a massive amount of their inv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... entory from outside the US Amazon, down 9 per cent Target, down 10.9 per cent Best Buy, down 17.8 per cent Dollar Tree, down 13.3 per cent Kohl's, down 22.8 per cent Technology Companies that make and sell computers, smartphones and other technology source many of their parts from abroad. Some manufacture their entire products overseas, meaning they will have to pay a tariff when ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... those products are shipped back for sale to consumers. Apple, down 9.2 per cent HP, down 14.7 per cent Dell, down 19 per cent Nvidia, down 7.8 per cent Banks If the economy slips into a recession, households and businesses will be less likely to borrow money as demand for products and services decline. Wells Fargo, down 9.1 per cent Bank of America, down 11.1 per cent JPMorg ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... an Chase, down 7 per cent Restaurants American consumers, feeling less confident about their financial futures this year, have already been pulling back on spending at restaurants as they tighten their budgets and prioritize only essential goods and services. Starbucks, down 11.2 per cent Cracker Barrel, down 12.7 per cent Cheesecake Factory, down 9.4 per cent Automakers Some ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... what surprisingly, automakers didn't get hit as hard most other sectors did on Thursday. That could be because most of Ford, GM and Stellantis' steel and aluminum — which Trump previously announced tariffs on — already comes from the United States, reducing the direct impact the companies would feel from higher duties. General Motors, down 4.3 per cent Ford, down 6 per cent Tesla, down 5.5 p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er cent Stellantis, down 9.4 per cent (AP) ARD ARD X X X X Extracts X X X X X X X X Extracts X X X X
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