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Stock Market Recovery Comes to a Screeching Halt After Trump’s Surprise EU Tariffs

A row of European flags in front of a building

Stock Market Recovery Comes to a Screeching Halt After Trump’s Surprise EU Tariffs

Published: by Omor IE

Key Points

  • The stock market is down due to the announcement of surprise tariffs on the E.U.

  • The president also warned Apple that it could be hit with a 25% tariff if it did not move manufacturing to the U.S.

  • Nuclear stocks are surging ahead of an anticipated executive order.

After “Liberation Day” tariffs were announced, Wall Street was spooked early on in April, and the stock market declined suddenly before a pause, and subsequent trade deal negotiations with various countries started aiding sentiment positively. That caused the market to pull off a sharp recovery with winning streaks not seen in decades.

The recovery already started slowing down earlier this week due to Moody’s downgrading U.S. credit rating and Treasury yields going up. Today, a surprise recommendation from President Donald Trump to hike tariffs on the European Union to 50% starting June has caused the market to turn red. In turn, this has dragged down the S&P 500 to negative year-to-date levels. He also threatened a 25% tariff on Apple (NASDAQ: AAPL) if the company did not make its iPhones in America.

It is unlikely that Apple will shift its entire production to the U.S., or even a meaningful amount of it. Manufacturing in the U.S. will make iPhones cost prohibitively high, and even Apple’s margins will not be enough to cover them, so it is more likely that the company would either reach an agreement, or it would absorb/pass on the tariffs without shifting its manufacturing base to the U.S.

Here’s a market update as of 10:45 AM (ET) today.

  • The S&P 500 is down 45 points, or 0.77%.
  • The Nasdaq Composite is down 189.2 points, or 1%.
  • The Dow Jones Industrial Average is down 259.61 points, or 0.62%.

Tariff-Prone Stocks Crater

Investors have been piling into tariff-prone stocks that were sold off in early April, since the conventional wisdom was that things would only improve from here. The administration was walking back its aggressive tariff policy and moving towards de-escalation. But the sudden recommendation of 50% tariffs on the E.U. means they are yet to be fully done with tariffs. As such, investors are pulling their money out of tariff-prone stocks once more.

Notable Losers Today

  • Deckers Outdoor (NYSE: DECK) is down 20.9%. The company posted dismal guidance, and the tariff news today isn’t helping much.
  • MINISO Group Holding (NYSE: MNSO) is down 17% due to the company missing Q1 estimates.
  • Ross Stores (NASDAQ: ROST) is down 14.7% after the company pulled its fiscal year outlook due to tariff uncertainty.
  • Booz Allen Hamilton (NYSE: BAH) is down 14.9% after it missed on quarterly revenue expectations and posted a weak outlook.
  • Workday (NASDAQ: WDAY) is down 11% after the company posted disappointing guidance.
  • Copart (NASDAQ: CPRT) is down 10.2% after a sales miss.

Notable Gainers Today

  • Merus NV (NASDAQ: MRUS) is up 30% after the company posted solid Phase 2 results on its cancer drug.
  • Nano Nuclear Energy (NASDAQ: NNE) is up 26.7% due to potential nuclear executive orders being signed soon by President Donald Trump.
  • Oklo (NYSE: OKLO) is up 25.7%
  • Centrus Energy (NYSEAMERICAN: LEU) is up 25.6%.
  • Uranium Energy (NYSEAMERICAN: UEC) is up 23.9%.

EVO, SMR, UUUU, NXE, MNTN, DNN, INTU, QUBT, ASOI, CCJ, SEDG, BWXT, and RUN are also up big.

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