By Joe Woelfel
Stocks were falling Monday after President Donald Trump said he would impose an additional 50% tariff on China if Beijing doesn't retract the 34% increase it threatened against the U.S. on Friday.
These stocks were making moves Monday:
Apple fell 6.4% to $176.30 after the iPhone maker declined 7.3% on Friday. Analyst Dan Ives at Wedbush cut his price target on the stock to $250 from $325. Apple's market cap sank $443.5 billion last week, the largest weekly market cap decline on record, according to Dow Jones Market Data. The stock dropped 13.6% last week, its worst week since the week ended March 30, 2020, when it plummeted nearly 18%. A large majority of Apple's products are assembled in China, which retaliated Friday to Trump's tariffs by launching a 34% levy on all imported goods from the U.S., effective Thursday.
Bank stocks fell again Monday as global recession fears mounted. A number of major U.S. banks are scheduled to kick off earnings season Friday. Their stocks plunged last Thursday and Friday with the group having its worst two-day decline since March 2020. "Tariffs have inflamed fears of a potential recession that would likely lead to reduced loan demand and more delinquencies," said Gene Goldman, chief investment officer of wealth manager Cetera Financial Group, last week. JPMorgan Chase was down 0.2% on Monday, Morgan Stanley tumbled 1.7%, and Wells Fargo was falling 0.8%.
Tesla declined 5.5% to $226.32 after dropping 10% on Friday. The stock's all-time closing high was $479.86 last December. Tesla dropped 9.2% last week, marking the stock's 10th down week in the past 11. Wedbush' analyst Dan 's Ives, a longtime Tesla bull, reduced his price target on the stock to $315 a share from $55o, with Ives writing in a research note that a brand crisis created by CEO Elon Musk, combined with the Trump tariffs, equaled a "perfect storm for Tesla." Ives still rates the shares a Buy.
General Motors was down 3.3% at $42.73. Bernstein analyst Daniel Roeska cut his rating on the auto maker to Sell from Hold and reduced his price target to $35 from $50. "What were we waiting for? For the past six months, we've been cautious as U.S. policy uncertainties started to mount," wrote Roeska. "Now, with greater clarity, the outlook for GM is clearly unfavorable." Ford Motor dropped 4.9%.
Shares of artificial-intelligence chip maker Nvidia were up 1%. Nvidia fell 7.4% on Friday and 14% for the week, the stock's worst week since late January when it tumbled almost 16%. Shares have fallen about 35% this year.
Super Micro Computer, the maker of AI servers, rose 8.3%, snapping a two-day streak. Super Micro was the best-performing stock in the S&P 500 on Monday, rising as much as 15% during the session.
U.S.-listed shares of Chinese companies such as Alibaba, PDD Holdings and JD.com tumbled Monday as stocks in Shanghai fell 7.3% after China said it would hit all U.S. goods with an additional 34% tariff. Alibaba was down 11%, PDD fell 5.8%, and JD.com dropped 7.8%.
MicroStrategy, the largest corporate holder of Bitcoin, was down 11% as the world's largest cryptocurrency tumbled to below $78,000. Fellow crypto-linked company Coinbase fell 5.6%.
Eli Lilly fell 4% while U.S.-listed shares of Novo Nordisk were up 0.5% after the Trump administration said Friday that Medicare and Medicaid won't be expanding coverage for anti-obesity medications. A proposal issued late last year by the Biden administration would have allowed Medicare and Medicaid to pay for drugs such as Lilly's Zepbound and Novo Nordisk's Wegovy, according to The Wall Street Journal. Health and wellness platform Hims & Hers declined 6.7%.
Earnings reports are expected Monday from Levi Strauss, Greenbrier, and Dave & Buster's Entertainment.
Reports are expected later this week from JPMorgan Chase, Wells Fargo, Morgan Stanley, BlackRock, Delta Air Lines, Bank of New York Mellon, Constellation Brands, Fastenal, CarMax, Cal-Maine Foods, and WD-40.
Write to Joe Woelfel at joseph.woelfel@barrons.com
This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
April 07, 2025 12:28 ET (16:28 GMT)
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