US equity close: Stock markets battered by tariffs in the worst day since March 2020

SPX daily

It was a bloodbath today, particularly for any company that has supply chains in southeast Asia or exposure to the consumer. There was barely a company that was spared.

The tariffs certainly aren’t hitting all companies but the market is pricing in a recession risk. How far it needs to tilt towards that risk may depend on Friday’s non-farm payrolls and comments schedule from Fed Chairman Powell at 11:25 am ET.

• S&P 500 -4.8% — worst since June 2020
• Nasdaq Comp -6.0% – worst since March 2020
• DJIA -4.0%
• Russell 2000 -6.4% — worst since June 2020
• Toronto TSX Comp -3.8%
• Mexican Bolsa +3.2%

Well, at least there isn’t a pandemic.

The Russell 2000 is now down 20% from the highs, which is the usual definition of a bear market. It’s at a 14-month low and is trading at the same levels as in late 2020.

Mexico didn’t seem to mind the news and was bid late.

Some notable movers:

• Apple -10%
• Amazon -9%
• Meta -8.7%
• Tesla -5.7%
• Best Buy -17.6%
• Shopify -20.2%
• Restoration Hardware -39.5%
• Ralph Lauren -16.5%
• United Airlines -15.4%
• Nike -13.8%
• Citigroup -12.0%

That is a bloodbath, and a self-inflicted one. I imagine the White House is going to be dealing with some very angry constituents.

This article was written by Adam Button at www.forexlive.com.