President Trump Announces New Reciprocal Tariffs On Dozens Of Nations

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Gap sinks after warning of a $150 million hit to operating income from tariffs

The legacy retailer topped Q1 estimates but said price hikes may be needed to offset rising trade costs.

5/30/25 8:57AM

Gap shares plunged more than 19% Friday morning after the Y2K-era retailer posted a Q1 beat but warned new tariffs could deal a heavy blow to its bottom line.

The retailer said recently announced 30% duties on imports from China and a 10% levy on goods from other countries could raise costs by between $250 million and $300 million without mitigation. So far, management thinks it can offset about half of those costs, but still expects a $100 million to $150 million hit to operating income, likely surfacing in the back half of the year.

For Q1, Gap reported earnings per share of $0.51, topping the $0.45 expected. Revenue landed at $3.46 billion versus a $3.42 billion forecast. The sell-off erased the stock’s 2025 gains, now down nearly 5% on the year.

Millie Giles8m

Gap rises as Q3 sales beat expectations following viral denim ad campaign

US-based apparel maker Gap is up 4% in early trading on Friday after posting better-than-expected Q3 results after the bell on Thursday.

The clothing and accessories retailer reported comparable sales rising 5% in the third quarter — the strongest growth that it’s seen since its 2017 holiday quarter, per CNBC — surpassing Wall Street’s forecast of 3.1%, according to data compiled by Bloomberg.

Adjusted EPS came in at $0.62, some ~6% ahead of consensus expectations. The company also hiked its sales guidance for the year, and now expects revenue to grow 1.7% to 2% (up from 1% to 2%).

Gap CEO says its viral denim campaign wasn't just a hit online — it drove double-digit growth in sales, fueled by Gen Z

Luke Kawa14h

US stocks just suffered one of their most stunning reversals in 32 years

Only four times in the more than 32-year history of the SPDR S&P 500 ETF has the fund opened at least 1.5% higher only to end the session down 1.5% or more.

And one of those days was today, with early enthusiasm over Nvidia’s strong earnings report turning into a wave of selling as speculative assets, chief among them bitcoin, cratered and dragged everything down with them. The S&P 500’s winners in particular saw heavy selling. Among the 15 stocks in the index that are up at least 70% year to date, the average performance on Thursday was down 5.6%.

The other occasions where US stocks have suffered such a violent turnabout:

April 8 of this year (the bottom, year to date!), when the White House said tariffs on China were going up to above 100%, kneecapping a nascent bounce-back attempt after a 10% drubbing in the three days after the Rose Garden tariff announcements. President Donald Trump would go on to announce that he was slashing reciprocal tariffs for 90 days the following session.

And the other two such instances both occurred in October 2008 (on the 7th and the 9th), as the fallout from the unfolding financial crisis was spreading after the prior month’s collapse of Lehman Brothers and the VIX Index, Wall Street’s so-called “fear gauge,” was routinely above 50, making immense volatility par for the course.

Tasha Matsumoto

14h

Stocks sink as strong Nvidia earnings fail to ease Wall Street’s AI anxiety

The S&P 500, Nasdaq 100, and Russell 2000 all fell, with tech leading the sell-off.

Chicago Bears wide receiver Trent Taylor (15) fumbles a punt during the first quarter of the National Football League game between the Chicago Bears and Cleveland Browns

Matt Phillips18h

Insurance against Oracle default becomes favorite AI-bust hedge, Bloomberg reports

Volume in the market for credit default swaps — essentially a kind of insurance against a company defaulting on its debts — on Oracle is surging as the company has supercharged its borrowing to finance its AI ambitions, Bloomberg’s Caleb Mutua reports:

“The price to protect against the company defaulting on its debt for five years tripled in recent months to as high as about 1.11 percentage point a year on Wednesday, or around $111,000 for every $10 million of principal protected, according to ICE Data Services.

As AI skeptics rushed in, trading volume on the company’s CDS ballooned to about $5 billion over the seven weeks ended Nov. 14, according to Barclays Plc credit strategist Jigar Patel. That’s up from a little more than $200 million in the same period last year.”

A Hedge Against AI Crash Emerges as Oracle CDS Market Explodes

“The price to protect against the company defaulting on its debt for five years tripled in recent months to as high as about 1.11 percentage point a year on Wednesday, or around $111,000 for every $10 million of principal protected, according to ICE Data Services.

As AI skeptics rushed in, trading volume on the company’s CDS ballooned to about $5 billion over the seven weeks ended Nov. 14, according to Barclays Plc credit strategist Jigar Patel. That’s up from a little more than $200 million in the same period last year.”

Nvidia dunks on the doubters

CEO Jensen Huang and CFO Colette Kress dismantled most of the recent arguments and bear cases put forward by their naysayers.

Luke Kawa19h