Market bloodbath
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Markets closed in a tailspin today as the world struggled to come to grips with President Trump's new economic order.
- Stocks suffered their worst fall in five years following yesterday's tariff announcement.
- The S&P 500 plunged 4.8%, as over $2 trillion of its constituents' market caps went up in smoke. The tech heavy Nasdaq cratered 6%, while the Russell 2000 index of small caps shed 6.6%.
Zoom in: On a more targeted level, individual stocks were rocked as investors dove into the potential tariff exposures of individual industries and companies.
- Apple shares fell over 9%, wiping out around $325 billion in market value.
- Best Buy, which sources three-quarters of the products it sells from China and Mexico, fell nearly 18%.
Apparel companies were decimated. Nike shares closed down over 14%, hitting a level not seen since 2017. The Gap (-20%), Abercrombie & Fitch (-16%), Macy's (-14%) and Lululemon (-10%) were all pummeled.
The big picture: Fear was evident well beyond the stock market. A combination of concerns around the U.S. growth outlook, rising inflation and a global pivot away from the U.S. economic ecosystem drove down the value of the dollar.
- Treasury yields fell as investors piled into safe havens. Yields on the 10-year note touched 4.002%, the first time it's hit that level since October.
