Stocks plummet after Trump tariffs, JPMorgan warns of recession: Morning Buzz

The major averages were plummeting near noon, with the Dow shedding nearly 1,400 points and the Nasdaq down about 900 points after President Donald Trump unveiled sweeping new tariffs that have thrown global financial markets into a state of significant volatility. The U.S. has imposed a baseline 10% tariff on all imports, with higher rates targeting specific countries: an incremental 34% on Chinese goods, 20% on European Union products, and 25% on imports from Japan and South Korea. ​

Looking to commodities, gold prices are 1% lower, putting a damper on the metal’s recent rally, while oil prices have dropped nearly 8% amid concerns about both tariffs and higher production from members of OPEC+. 

Investors are increasingly concerned about the potential for a global recession and stagflation – a combination of stagnant economic growth and rising inflation – stemming from the escalating trade tensions. The CBOE Volatility Index has reached a three-week high, indicating heightened investor anxiety. 

Get caught up quickly on the top news and calls moving stocks with these five Top Five lists. 

1. STOCK NEWS:

• President Trump signed an executive order imposing 25% tariffs on all foreign-made autos as well as “reciprocal” tariff rates on dozens of other countries
• Following the tariff announcement, JPMorgan global economist Nora Szentivanyi said the firm expects a(AAPL) shares are dropping as multiple analysts highlighted the tech giant in the wake of new tariffs, with Citi estimating a 9% negative gross margin impact on the company and Wedbush seeing “major pressure” on the iPhone maker
• Conagra Brands (CAG) reported lower-than-expected Q3 results and reiterated its guidance for FY25
• Hershey (HSY) announced a deal to buy the LesserEvil popcorn brand

2. WALL STREET CALLS:

• Nvidia (NVDA) downgraded at HSBC, here’s why
• Block (XYZ) upgraded to Overweight at Morgan Stanley
• Lyft (LYFT) double downgraded to Underperform at BofA on AV overhang
• Best Buy (BBY) and RH (RH) downgraded at Citi as Trump’s worse than expected reciprocal tariff announcement “significantly changes” the firm’s view of the broadlines and hardlines sector
• TJX (TJX) and Ross Stores (ROST) upgraded to Buy at Citi as the firm views off-price as “defensively positioned” in the near-term and well positioned for continued growth in the long-term

3. AROUND THE WEB:

• Qualcomm (QCOM) is considering making an offer for Alphawave (AWEVF), a London-listed semiconductor company which has a $1.3B market cap, Bloomberg reports
• Italian car parts manufacturer CLN-Coils Lamiere Nastri SpA is in talks to sell assets to Stellantis (STLA), its main customer, amid discussions with lenders to cut its debt, Bloomberg says
• Novo Nordisk (NVO) executive Camilla Sylvest is departing the drugmaker after 28 years, Bloomberg says
• Premca Capital, an investment fund with a less than 1% stake in WeightWatchers (WW), is launching a proxy fight, and is seeking board seats and hundreds of millions of dollars in cost cuts, WSJ reports
• Volkswagen (VWAGY) intends to add import fees to the sticker prices of vehicles shipped to the U.S., Bloomberg says

4. MOVERS:

• Verizon (VZ) increases after launching a three-year price lock guarantee on all plans
• PepsiCo (PEP) gains after WSJ reported the company is working to save itself from years of decline
• RxSight (RXST) lower after BofA double downgraded the stock to Underperform
• SharkNinja (SN) falls after BofA lowered its price target on the stock to $120 from $140
• Gap (GAP) declines after Evercore said it is among the “worst positioned” in apparel for tariffs

5. EARNINGS/GUIDANCE:

• Bassett Furniture (BSET) reported Q1 results, with EPS and revenue beating consensus
• Acuity Brands (AYI) reported Q2 results, with CEO Neil Ashe commenting, “While we are encouraged by positive early indicators from our growth initiatives and improving sequential growth rate trends, we have more work to do”
• Lindsay (LNN) reported Q2 results, with EPS and revenue beating consensus
• Gencor Industries (GENC) reported preliminary Q1 results, with revenue higher year-over-year
• Lamb Weston (LW) reported Q3 results, with CEO Mike Smith commenting, “we closed the quarter with sequentially improved volume trends and profitability metrics that were in line with our previously updated fiscal 2025 outlook

INDEXES:

Near midday, the Dow was down 3.16%, or 1,333.92, to 40,891.40, the Nasdaq was down 4.85%, or 853.92, to 16,747.12, and the S&P 500 was down 3.80%, or 215.63, to 5,455.34.