**Wall Street Reacts Coldly to Trump’s New Tariff Plan: A Stormy Day for Investors**
In a move that could only be described as a financial fireworks show gone wrong, President Donald Trump has announced hefty new tariffs aimed at imports from most countries, sending shockwaves through Wall Street. Investors were not pleased, to say the least, as the financial markets experienced one of their roughest days in nearly a year. The wave of red on the screens was as unwelcoming as a rainy day at a summer barbecue.
The Dow Jones Industrial Average, often seen as the bellwether for the stock market, tumbled a staggering 3.2%. Meanwhile, the S&P 500 and tech-heavy Nasdaq weren’t far behind, plummeting 3.7% and 4.6% respectively. This drastic downturn could have investors hiding under their bedsheets like a kid scared by a thunderstorm. Economists are now mumbling about possible worst daily losses for these indexes since September of the last year—a reminder that financial markets can shift faster than a rabbit on a hot skillet.
Among the hardest hit were the ultra-popular “magnificent seven” tech companies, which collectively lost a jaw-dropping $870 billion, with Apple taking a particularly painful hit, shedding $31 billion in market value. Retail favorites weren’t safe either; shares in major stores like Best Buy, Target, and Dollar Tree plummeted by more than 10%. Even athletic wear giants like Lululemon and Nike faced big declines, primarily due to their heavy reliance on manufacturing in countries like China and Vietnam, which are major targets of the new tariffs. It looks like a gym session turned into a painful reality check for these brands.
To make matters even stickier, airline stocks that were already nursing wounds from a 24% dip this year took another nosedive following Trump’s tariff rollout. Experts warn that this could mean higher prices for summer vacations, which is about as welcome as a mosquito at a picnic. But not all retailers are bracing for impact. Walmart and Costco appear to be immune to the brunt of the new tariffs. While the stock prices of Walmart dipped slightly, Costco even saw a small increase right after the market opened, proving that sometimes, even in a storm, there are a few sheltered spots.
In the midst of this financial chaos, top economists are raising alarms. The chief U.S. economist at JP Morgan Chase warned that these tariffs could take the economy to the edge of recession. The potential shrinkage in consumers’ disposable income during the second and third quarters of 2025 could lead to a significant drop in spending. Meanwhile, inflation is expected to swell up to 4%, which is twice the Federal Reserve’s goal and a stark reminder that financial experts don’t just sit around tossing coins—they’re heavy with caution.
As the dust settles and investors catch their breath, keeping an eye on the potential consequences of these tariffs will be critical. Economists from UBS are predicting a technical recession, with GDP likely to contract for two consecutive quarters. As if watching a sad movie unfold, one can only wait and see where this leads. With Wall Street feeling like a rollercoaster ride, one thing remains clear: the economy is a tricky beast, and right now, it’s bucking like a bronco at a rodeo. Buckle up!
