Nasdaq 100 and S&P500: Tech Weakness Spreads — Eyes on Apple, NVIDIA Reaction

Dow Futures Drop 1,300 Points as Tariffs Hammer Key Stocks and Sectors

U.S. stock futures tumbled Thursday following President Donald Trump’s sweeping tariff announcement, which spurred fresh concerns about a global trade war and its potential economic fallout. Dow futures shed over 1,300 points, or 3%, while the S&P 500 and Nasdaq futures dropped 3.5% and 4% respectively. The selling pressure intensified as details emerged showing the new tariffs significantly exceeded market expectations, hitting import-heavy companies and key tech names.

Which Stocks Are Taking the Hardest Hits from the Tariffs?

Apple sank 7% in premarket trading, pressured by its heavy exposure to China and Vietnam—countries now facing 34% and 46% tariff rates respectively. While analysts believe Apple may eventually secure exemptions, its global supply chain leaves it vulnerable in the short term. Nike, another multinational reliant on Asian manufacturing, plunged 9% after Trump’s announcement. With about half of its footwear produced in China and Vietnam, Nike is directly in the tariff crosshairs.

Discount retailers were hit even harder. Five Below dropped 16%, Dollar Tree fell 11%, and Gap slid nearly 12%. These companies depend heavily on low-cost imports, particularly from Southeast Asia. Lululemon, with around 90% of its products sourced from Vietnam, Cambodia, and other now-targeted countries, saw shares fall 12%. Deckers Outdoor and Wayfair each dropped more than 12%, reflecting exposure to the same regions.

What’s Happening in the Tech and Chip Space?

Tech stocks sold off across the board, despite some products escaping direct levies. Nvidia slipped nearly 6% on fears of Chinese retaliation and general risk aversion. Advanced Micro Devices and Broadcom dropped 5.6% and 7.6% respectively. Microsoft shed over 2% after scaling back data center expansion. Uncertainty surrounding the White House’s upcoming AI chip rules also added to pressure on the sector, limiting investor confidence in future performance.

Are There Broader Sector Trends Emerging?

Auto and financial stocks were also dragged down. Ford dipped 2.3% despite offering employee pricing to mitigate tariff fallout. Banks slumped, with JPMorgan down 3.8% and Citi, Goldman Sachs, and Morgan Stanley each falling over 4%. Traders fear that a worsening economic backdrop could reduce lending activity and heighten credit risks. RH plummeted 28% after weak earnings and a stark warning from its CEO about the U.S. housing market.

What’s the Near-Term Outlook for Markets?

Markets face heightened volatility as traders reassess earnings projections, supply chain risks, and macro data. Thursday’s surprise drop injobless claims to 219,000 offers a slight economic buffer, but focus now shifts to Friday’s jobs report, expected to show a gain of 140,000. Until clearer exemptions or trade negotiations surface, investor sentiment is likely to remain cautious, especially in sectors with global exposure. Traders will be watching closely for any retaliatory moves from China or policy clarifications from the administration.

More Information in our Economic Calendar.