The Stock Market Flashes a Warning as Investors Get Bad News About President Trump's Tariffs

Economic Overview - The S&P 500 has declined by 1.5% in November, a month typically strong for the U.S. stock market, due to negative economic news and concerns over high valuations, particularly in artificial intelligence stocks [2][7] - The U.S. manufacturing sector has contracted for eight consecutive months, as indicated by the ISM Manufacturing Purchasing Managers' Index (PMI), which reflects declines across all five categories [4][5][7] Impact of Tariffs - Tariffs are significantly impacting U.S. companies and consumers, contrary to the belief that foreign exporters would bear the costs. This has led to rising Consumer Price Index (CPI) inflation since April [6] - Apple reported $1.1 billion in tariff-related cost increases for the September quarter, with expectations of rising to $1.4 billion in the December quarter [8] - Caterpillar anticipates an incremental tariff impact of $1.6 billion to $1.75 billion for 2025 [8] - Chipotle is experiencing mid-single-digit inflation due to tariffs, particularly affecting beef prices, leading to reduced consumer dining out [8] - Ford expects tariffs to create a $1 billion headwind in 2025, with similar impacts anticipated in 2026 [8] - Procter & Gamble raised prices on 25% of its products to offset approximately $1 billion in tariff-related costs [8] - Target reported a 20% decrease in second-quarter earnings, primarily attributed to tariff-related cost increases [8] - Walmart continues to see rising costs as it replenishes inventory at post-tariff price levels [8]