Stock Movers: Apple, Nike, Stellantis Hit by New Tariffs and Supply Chain Issues

Apple's Market Value Plunge

• 🍎 Apple shares experienced their worst single-day decline since March 2020, dropping about 9% and losing approximately $311 billion in market value.
• 🌍 The company's reliance on China for its supply chain is a major factor, with new tariffs reaching 34% for China.
• 🌏 However, Apple is also affected by tariffs on other nations like India, Vietnam, Malaysia, Thailand, and Ireland.

Nike and Apparel Sector Impact

• 👟 Nike shares fell more than 14% yesterday, with a further 5% drop this morning, due to a 46% tariff on goods from Vietnam.
• 🏭 Apparel and footwear makers, including Adidas and Lululemon, are being hit as they shifted manufacturing to countries like Vietnam to avoid previous tariffs.
• 🇺🇸 Domestic production in the US apparel and footwear markets is estimated to be very low, at 2.5% and 1% respectively.

Stellantis and Automotive Sector Challenges

• 🚗 Stellantis shares closed down over 9% yesterday, with an additional 5% drop this morning, impacted by tariffs and supply chain disruptions.
• 🇨🇦 Production is being paused for two weeks at a Stellantis plant in Ontario, Canada, affecting about 6,000 auto sector workers with temporary layoff notices.
• 📉 Fitch downgraded Stellantis due to tariffs, prompting the automaker to extend its employee discount program to all car buyers to boost sales.

Broader Market Impact

• 📉 The semiconductor sector, tracked by the socks index, has fallen to its lowest levels since November 2023.
• 📉 Dell Technologies also saw a significant drop, sinking 19% yesterday and down as much as 6% this morning, indicating a broader market downturn.