Nasdaq Falls 2% on Tariff Confirmation... Apple Stock Plunges Another 5% [New York Stock Market Briefing]

Uk Jin

Summary

It was reported that the New York stock market closed sharply lower due to U.S. President Donald Trump's reaffirmation of his plan to impose reciprocal tariffs.
It was stated that Apple, as a company that procures parts from China, is evaluated as one of the biggest victims, with its stock falling 23% over four trading days.
It was reported that major large tech stocks in the U.S. generally fell, recording significant declines in the stock market.

"104% Tariff on China Effective from the 9th"

U.S. President Donald Trump reaffirmed his plan to impose reciprocal tariffs, causing the New York stock market to close sharply lower again on the 8th (local time).

On this day, the Dow Jones Industrial Average closed at 37,645.59, down 320.01 points (0.84%) from the previous trading day on the New York Stock Exchange. The Standard & Poor's (S&P) 500 index fell 79.48 points (1.57%) to 4,982.77, and the Nasdaq index dropped 335.35 points (2.15%) to 15,267.91. It was the first time in a year since April 2024 that the S&P 500 index closed below the 5,000 mark.

The three major indices of the New York stock market started with a significant rebound due to bargain hunting, expecting that the reciprocal tariffs of the Trump administration would be eased through individual negotiations. The Nasdaq index even jumped 4.6% during the day compared to the previous trading day.

However, White House spokeswoman Caroline Levitt confirmed in a briefing that afternoon local time that a total of 104% tariffs on China would take effect at 12:01 a.m. on the 9th, causing a sudden change. The three major indices of the New York stock market gave up all their morning gains and further expanded their losses in the afternoon, eventually closing lower.

Large tech stocks, which started strong, also mostly closed lower.

Apple's stock closed at $172.42, down 4.98% from the previous day. The stock fell to its lowest level in 11 months since May 2 last year (closing at $172.22).

Apple's stock plunged 19% over the past three days until the previous day after President Trump announced reciprocal tariffs on major trading partners on the 2nd, marking the worst decline since the 'dot-com bubble' burst. With the stock falling again today, the decline expanded to 23% over four trading days.

Apple, which procures parts from China and Taiwan and manufactures finished products, is evaluated as one of the biggest victims of this reciprocal tariff measure. Its market capitalization also shrank to $2.59 trillion, losing its top spot to Microsoft (MS). MS's stock also fell 0.92% today, down 7% over the past four days.

Nvidia's stock, which recovered the $100 mark during the day, closed at $96.30, down 1.37%, and Tesla closed at $221.86, down 4.90%. Amazon, Alphabet, and Meta stocks also fell by 2.62%, 1.78%, and 1.12%, respectively.

Reporter Jeongdong No, Hankyung.com dong2@hankyung.com