Forbes·2025-04-03 13:14Core Viewpoint - The announcement of aggressive tariffs by President Donald Trump has led to a significant decline in stock markets, with major indexes facing their worst daily losses in years [1]. Market Impact - The Dow Jones Industrial Average fell by 2.8%, or 1,190 points, the S&P 500 decreased by 3.3%, and the Nasdaq dropped by 4.4%, marking the worst day for all three indexes since September 2022 [2]. - The "magnificent seven" tech companies experienced substantial losses, with Apple down 8%, Alphabet down 3%, Amazon down 6%, Meta down 7%, Microsoft down 2%, Nvidia down 6%, and Tesla down 4% [2]. Sector Performance - Retail stocks also suffered, with Walmart, Costco, and Home Depot losing 2% or more, while Lululemon and Nike saw declines close to 10% due to their manufacturing reliance on China and Vietnam, which are heavily targeted by the new tariffs [3]. - Financial services companies faced declines as well, with American Express down 7%, JPMorgan Chase down 5%, and Robinhood down 8% [3]. Bond Market Reaction - U.S. government bonds rallied as investors sought safer assets, leading to a decline in yields for the benchmark 10-year Treasury by more than 15 basis points to just above 4%, the lowest level since before the election [4]. Specific Company Analysis - Apple is particularly affected, facing an estimated $39.5 billion in tariff costs, which could result in a 32% hit to earnings. Analysts speculate that a carveout for Apple may be necessary due to its significant non-U.S. manufacturing [5]. - The total market value loss for the "magnificent seven" was approximately $784 billion, with Apple's loss alone accounting for $263 billion [6]. Strategic Outlook - Wall Street strategists have raised concerns about the likelihood of a bear market, with UBS setting a target of 5,300 for the S&P, indicating a potential further decline of 4% from premarket levels. Bank of America's top equity strategist noted the absence of a clear tariff playbook [7].