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Live: Vanguard S&P 500 ETF (VOO) Plummets 4% as Nike (NKE) and Dell (DELL) Sink
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Market Sinking Headed into the Close
Stocks are near their daily lows as we approach the 4 p.m. closing bell. The Nasdaq Composite is down nearly 1,000 points, or -5.65%.
The S&P 500 is down 4.55% and the Dow Jones is down 3.73%.
What Companies Are Hit Hardest By Tariffs?
Morgan Stanley crunched the numbers on what tech companies have the highest exposure to tariffs and here’s what they found:
- Apple: 42%
- Seagate: 38%
- GoPro: 34%
- Dell: 32%
- Logitech: 31%
- HP: 28%
- Sonos: 25%
Each of these stocks is down dramatically this morning.
Indexes Keep Falling
Indexes keep trending south as the day goes:
- Nasdaq Composite: Down 5.6%
- S&P 500: Down 4.3%
- Dow Jones: Down 3.63%
The VOO is currently down 4.23%.
Stocks Gaining
Some stocks in the VOO are seeing gains today, here are a few of the winners:
- First Solar: Up 7.4%
- Lamb Weston: Up 7.1%
- Molina Healthcare: Up 4.9%
- MarketAxess: Up 4.2%
In general, consumers are moving to areas like consumer goods and grocery stores that are safe havens and have limited exposure to tariffs. Another strong industry is domestic healthcare distributors.
A day following “Liberation Day,” the talk of the town is that investors have been liberated from capital gains taxes.
The Dow Jones is down 3.72%, the Nasdaq is down more than 5%, and the Vanguard S&P 500 ETF (NYSE: VOO) is down 3.93% as of 10:25 a.m. ET.
Why is the market selling off?
- Tariffs announced by the Trump Administration are estimated to reduce trade by $900 billion this year. Almost every Wall Street bank is now pulling back economic growth estimates for the year.
- Tariff rates on other countries announced last night range from 10% to more than 50%. As of 2022, the United States had a weighted-average tariff rate of about 1.5%. However, after Trump’s tariff announcement yesterday the United States would have a weighted average tariff rate of 29%.
- Another issue driving stocks down today is the fact these tariffs appear to be less of a ‘negotiating tactic’ and something that will be in place for a prolonged period of time. For example, both Vietnam and Israel announced large cuts to tariffs on U.S. goods, but saw reciprocal tariff rates of 46% and 17%, respectively.
What Stocks Are Falling in the Vanguard S&P 500 ETF?
What stocks in the VOO are seeing the biggest declines today?
- Retailers and Clothing: Williams-Sonoma is down 18.1%, Deckers Outdoor down 16.9%, Ralph Lauren down 16.9%, and Nike down 13%. Each of these companies faces not only reduced consumer spending if a recession happens but also have overseas supply chains that would see significant tariff impacts if these tariffs take effect as presented on April 9th.
- Consumer Electronics: Dell is down 15.3%, HP is down 15.7%, and Best Buy is down 15.8%. Once again, these companies not only face reduced consumer demand but significant tariffs on their products. Apple was down 9% in early trading but has trimmed its losses to 7.9%.
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