It was a doozy of a day for stocks Thursday, with the main indexes taking a nosedive out of the gate and staying there through the close.
The selling was prompted by President Donald Trump's late-Wednesday press conference where he unveiled sweeping tariffs against a long list of U.S. trading partners.
"With a chart that basically shouted, 'Please don't read the fine print,' there were figures that ranged everywhere from 10% to 49%," says Dann Ryan, managing partner at Sincerus Advisory.
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
The unfortunate result of this, Ryan adds, is that there "will probably be several more days of uncertainty to process what this all means and what exemptions there will be, as any last-minute deals continue to be made."
And it gave markets "none of the reassurances" they are wanting.
As a result, the Dow Jones Industrial Average closed down 4.0% at 40,545, the S&P 500 was off 4.8% at 5,396 – falling back into correction territory – and the Nasdaq Composite had plunged 6.0% to 16,550.
Thursday's sell-off erased roughly $3.1 trillion in U.S. equity valuation, according to Dow Jones Market Data. This is the biggest single-day drop in stock market valuation since March 16, 2020.
Apple stock could see an outsized tariff impact
Some of the day's biggest decliners were once many of Wall Street's highest fliers. Amazon.com (AMZN), for one, slumped 9.0%, while Meta Platforms (META) shed 9.0%.
And Apple (AAPL) plunged 9.3%, with Morgan Stanley analyst Erik Woodring saying the iPhone maker is one of the worst-positioned to absorb the tariffs.
Apple relies "on extensive international manufacturing, with the large majority of finished goods sold into the U.S. assembled in SE Asian nations," Woodring says.
He believes the company is potentially facing an added tariff cost of more than $38 billion, which works out to roughly 26% of EBIT (earnings before interest and taxes) for fiscal 2026.
Nike leads Dow stocks lower
While Apple's decline is noteworthy, Nike (NKE) was actually the worst Dow Jones stock today. Shares tumbled 14.4%, bringing their year to date decline to 26%.
Nike recently forecast slower-than-expected sales growth for its current quarter, citing the impact of tariffs. The athletic apparel and footwear maker, which has strong ties to China, also said during its earnings call that "new tariffs" were among several things creating uncertainty at the moment.
But Jefferies analyst Randal Konik is taking a glass-half-full approach to Nike. Not only is the company well-positioned to "compete on price over the longer term and gain market share as a result," he says, but NKE stock is near a bottom and management's turnaround plans should spark upside.
RH craters nearly 40% after earnings, tariff news
Having an even worse day than Nike was fellow consumer discretionary stock RH (RH), which plummeted 40.1%.
The luxury home goods retailer reported lower-than-expected fiscal fourth-quarter results. It also forecast full-year revenue growth of 10% to 13%, below the 15% Wall Street is anticipating, due to the "negative impact" of tariffs.
Meanwhile, during the company's earnings call, RH CEO Gary Friedman was asked about the stock's price after Trump unveiled his sweeping tariffs.
"Oh sh*t," Friedman said. "I just looked at the screen. I hadn't looked at it. You know, it got hit when I think the tariffs came out. And, you know, everybody can see in our 10-K where we're sourcing from, so it's not a secret."
Indeed, the regulatory filing shows that based on dollar volumes, RH sources 72% of its products from Asia.
Shares of RH, which was a member of Warren Buffett's Berkshire Hathaway equity portfolio from Q3 2019 to Q1 2023, are now down 62% for the year to date.
Related content
- Wall Street Is Worried About Apple Stock. Should You Be Too?
- The Best Value Stocks to Buy
- The Stock Market Is Selling Off. Here's What Investors Should Do
-
You Don't Need a Billion to Retire in the Hamptons: Finding the Right Town for Your BudgetYes, it's favored by the rich and famous, but retiring in the Hamptons may not be out of your league. Here's a guide to affordability and and who is happiest living there.
-
My First $1 Million: Construction Industry Product ManagerEver wonder how someone who's made a million dollars or more did it? Kiplinger's My First $1 Million series uncovers the answers.
-
Gen X Turns 60: It's Time to Remix Your Retirement PlaylistIf you want a worry-free retirement, you can't keep playing the same old song. You need to freshen up your financial strategies, as well as your music.
-
I'm a Financial Adviser: Here's How a Three-Part Retirement 'Crash Plan' Can Prepare You for Market TurbulenceHaving a plan ready to go when markets get wild — covering how you'll handle income, rebalancing and taxes — can be the ultimate retirement secret weapon.
-
Investors Buy the Nasdaq's Big Dip: Stock Market TodayStocks are up and down again to end an up-and-down week ahead of big earnings announcements and the eventual return of regular economic data flow.
-
Here's How to Plan This Year's Roth Conversion, From a Wealth ManagerWhile time is running out to make Roth conversions before the end of the taxable year, consider taking your time and developing a long-term strategy.
-
Four Times You Need a Second Opinion on Your Financial PlanIs your financial plan fit for purpose — or is your adviser peddling an outdated strategy? When you see these red flags, it's time for a second opinion.Evan
-
'But It's Not My Fault!': Your Insurance Company Absolutely Will Blame You in These Five ScenariosInsurance companies care about 'fault' in more ways than you think — from payment mishaps to your neighbor's landscaping — so it's on you to manage the risks.
-
Dow Dives 797 Points as Government Opens: Stock Market TodayThe process of pricing and re-pricing realities old and new never stops, and next week promises to be at least as exciting as this week.
-
5 Core Stocks Every Investor Should Own In 2026 and BeyondCore stocks are solid, long-term investments that provide stable returns and steady growth within your portfolio. Here are five we like.
