US stocks pummeled by tariffs in biggest loss since 2020

US stocks cratered on Thursday as traders reacted to the suite of tariffs that promise to push recession odds higher and make Americans poorer. The S&P 500 slumped 4.8%, the Nasdaq 100 sank 5.4%, and the Russell 2000 tumbled 6.6%.

Some on Wall Street are still of the view that these trade barriers, which may push the US effective tariff rate to its highest level in more than a century, are so onerous that they’re more of a negotiating tactic rather than a looming reality.

Consumer staples was the lone S&P 500 sector ETF to go positive on the day, while seven sector ETFs fell more than 4%, with energy and tech the two worst performers.

Apple was heavily sold, as its low-cost operations in Southeast Asia now face a surge in costs from tariffs. The iPhone maker had its worst day since the throes of the Covid-induced market meltdown in March 2020.

A ton of exposure to heavily tariffed Vietnam meant that Nike swooned instead of swooshed. Most other retailers, including Lululemon, Dollar Tree, Best Buy, and Target, were in the same bucket, posting major losses.

Besides tariffs, there was also some bad AI-specific news, with more reports of Microsoft taking a step back from its data center spending binge.

Crypto-linked stocks like Coinbase, MARA Holdings, and Strategy got clobbered.

The effects of tariffs are not just confined to the stock market and are already having an impact on the job market. Stellantis said it will idle production at two plants and lay off 900 American workers in light of the levies.

That’s as Ford, which does more of its final assembly stateside than most of its rivals, aims to cut prices to take advantage of the operational stress faced by competitors.

And now, the bright spots:

Intel jumped on a report that it’s reached a preliminary deal for a joint venture with powerhouse chip producer TSMC.

It was a record closing high for Coca-Cola, as the ubiquitous brand served as a safe haven amid the terrible tape.

And smoke ‘em while your portfolio’s getting smoked: British American Tobacco, Philip Morris, and Altria all gained on the day.

Goodyear also posted massive gains as it’s relatively well insulated from tariffs for the time being.