Shares of networking technology giant Cisco (NASDAQ:CSCO) fell 6.6% in the afternoon session after President Trump announced "reciprocal tariffs" on all US imports, set at a minimum rate of 10%. Markets reacted negatively to the announcement, reflecting deep concerns among investors about the broader economic implications. The tariffs were likely seen as a significant threat to global trade flows, with the potential to slow economic growth, drive up consumer prices, and spark retaliatory measures.
BofA analyst warns airline earnings are at risk due to weakened demand, low transborder traffic, and business travel stagnation, lowering 2025 guidance.
Most consumer discretionary businesses succeed or fail based on the broader economy. This sensitive demand profile can cause discretionary stocks to plummet when macro uncertainty enters the fray,
and over the past six months, the industry has shed 10.7%. This drop was worse than the S&P 500’s 5.2% fall.
The S&P 500 is home to the biggest and most well-known companies in the market, making it a go-to index for investors seeking stability.
But not all large-cap stocks are created equal - some are struggling with slowing growth, declining margins, or increased competition.
Value investing has created more billionaires than any other strategy, like Warren Buffett, who built his fortune by purchasing wonderful businesses at reasonable prices.
But these hidden gems are few and far between - many stocks that appear cheap often stay that way because they face structural issues.
Goldman Sachs analyst Brooke Roach warns that U.S. tariff hikes will significantly impact retail, with China's tariff rate soaring to 54% and key sourcing nations like Vietnam (46%) and Cambodia (49%) facing steep increases. Apparel and footwear tariffs will average 38%, forcing brands to adjust pricing and negotiate costs.
Several restaurant stocks are taking a beating on Thursday as broader markets tumble in reaction to sweeping reciprocal tariffs from the Trump administration.
Sarepta and Roche paused Elevidys trials in the EU after a patient death. Analysts warn of potential sales declines as safety concerns impact market outlook.
Goldman Sachs analyst expects uncertainty and low rates to impact EPS forecasts for Capital Markets stocks. Alternatives face EPS risks, while Brokers and Wealth Advisors may see downside. Traditional Managers also at risk.
Corn futures ended slightly weaker in preparation for the U.S. administration’s tariff policy, which, after yesterday’s close, was confirmed on all imported goods.
Biotech stocks face a tough 2025 with SMid-cap losses up to 40% YTD. BofA cites FDA changes, tariffs, and capital struggles but notes potential opportunities.
