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Wall Street Indexes Extend Losses as U.S.-China Trade War Intensifies

Barry Adams
09 Apr, 2025
New York City

Wall Street indexes resumed their slide and extended five-day losses after Trump's import tax kicked in and China announced its retaliatory tariffs.

The S&P 500 index dropped 2%, and the tech-heavy Nasdaq Composite declined 2.9% after China said it would continue to take "resolute and forceful" measures.

Anxiety over the deepening trade war between the world's two largest economies rattled investors on Wall Street and around the world.

U.S. tariffs on imports from other countries also took effect amid uncertainty about the U.S. trade policy outlook and its impact on economic growth and inflation.

While on the campaign trail, Donald Trump repeatedly assured voters about his plans to lower prices, increase the wealth of citizens, and end the war in Ukraine on the first day in office.

Instead, consumer prices are rebounding sharply with the largest gains in automobile prices and electronics and home goods and food products. Investors have seen losses of 20% in their stock holdings, and Russia has grabbed more territory in Ukraine.

Moreover, Trump repeatedly reminded investors that President Biden should be impeached or forced out if the Dow Jones Industrial Average falls more than 1,000 points.

The benchmark index has now lost more than 4,500 points over the last four days and is still searching for lower levels.

Commodities, Currencies, Indexes, Yields

The S&P 500 index increased 0.7% to 5,014.95, the Nasdaq Composite edged up 1.6% to 15,482.13, and the Russell 2000 index was down 1.05% to 1,745.51.

The yield on 2-year Treasury notes edged higher to 3.78%, 10-year Treasury notes increased to 4.41%, and 30-year Treasury bonds advanced to 4.92%.

WTI crude oil decreased $2.57 to $57.01 a barrel, and natural gas prices edged lower by $0.03 to $3.44 a thermal unit.

Gold increased by $79.75 to 3,058.10 an ounce, and silver edged up by $0.82 to $30.42.

The dollar index, which weighs the US currency against a basket of foreign currencies, decreased by 0.87 to 102.08 and traded at a two-year high.

U.S. Movers

Walmart Inc. declined 2.5% to $81.20 after the big-box retailer withdrew its first quarter earnings estimate, citing tariff uncertainty.

Target Corp. dropped 2.5% to $86.50 and dropped to a new one-year low amid tariff uncertainty and worries linked to resurgent inflation.

RH dropped 3% to $145.10, Abercrombie & Fitch declined 2.5% to $65.33, Gap Inc. decreased 3.5% to $17.04, lululemon fell 2.4% to $242.05, and Amazon.com fell 1.8% to $167.67.

Costco Wholesale Corp. decreased 1.6% to $894.12, and Best Buy declined 3.3% to $54.30.

Electronic hardware companies led the decliners after China announced its retaliatory tariff of 84%.

Apple Inc. dropped 1.7% to 169.48, Nvidia added 0.7% to 96.35, AMD fell 1.5% to $77.14, and Micron Technology fell 1.9% to $64.30.

U.S. Movers: Aehr Test Systems, Cal-Maine Foods, Fila Group, MSC Industrial, Tilray Brands, Walgreens, WD-40

Scott Peters
09 Apr, 2025
New York City

Cal-Maine Foods Inc. dropped 4.5% to $86.30 after the egg producer reported fiscal third quarter 2025 results ending in March.

Net sales edged up to $1.42 billion from $703.1 million, net income jumped to $508.5 million from $146.7 million, and diluted earnings per share rose to $10.38 from $3.00 a year ago.

The company sold a record 331.4 million dozen shell eggs, representing a 10.2% increase, including the contribution from acquisitions, compared with 300.8 million dozens for the third quarter of fiscal 2024.

Sales of conventional eggs totaled 213.2 million dozens, compared with 192.2 million dozens for the prior-year period, an increase of 11.0%.

Specialty egg volumes also increased by 8.8% to 118.1 million dozens sold for the third quarter of fiscal 2025 compared with 108.6 million dozens sold for the prior-year period.

Demand was strong during the third fiscal quarter, which is typically a period of higher seasonal demand.

The company said it will proceed with the acquisition of Echo Lake Foods Inc. for approximately $258 million.

Cal-Maine proposed a cash dividend of $3.46 per share for a total of approximately $170 million.

In addition, the company approved a $500 million share repurchase program.

WD-40 Co. traded flat at $218.48 after the maintenance products maker reported results for the second quarter of 2025.

Net sales increased 5% to $146.1 million from $139.1 million, net income surged 92% to $29.9 million from $15.5 million, and diluted earnings per share rose 92% to $2.19 from $1.14 a year ago.

The company guided fiscal 2025 net sales to be between $600 million and $630 million, an increase of 6% to 11%, compared to $590.6 million in 2024.

Diluted earnings per share are estimated to be between $5.25 and $5.55, higher than the company’s previous guidance of $5.20 to $5.45, and compared to $5.11 in 2024.

Tilray Brands Inc. eased 0.07% to $0.46 after the lifestyle and consumer packaged goods company reported fiscal third quarter 2025 results ending in February.

Revenue declined to $185.8 million from $188.3 million, net loss widened to $789.4 million from $92.7 million, and diluted loss per share increased to 87 cents from 12 cents a year ago.

The company guided for fiscal 2025 revenue to be between $850 million and $900 million, compared to $788.9 million in 2024.

Aehr Test Systems Inc. gained 2.9% to $6.98 after the provider of test solutions for semiconductor devices reported increased revenue in the fiscal third quarter 2025 ending in February.

Revenue edged up to $18.31 million from $7.56 million, net loss shrank to $0.64 million from a loss of $1.47 million, and diluted loss per share fell to 2 cents from a loss of 5 cents a year ago.

For the nine months ending in February, revenue declined to $44.88 million from $49.62 million, net loss was $1.01 million compared to a profit of $9.29 million, and diluted loss per share came in at 3 cents compared to a profit of 31 cents a year earlier.

MSC Industrial Direct Co. Inc. traded flat at $70.17 after the industrial equipment provider reported results for the fiscal second quarter of 2025 ending in March.

Net sales dropped to $891.7 million from $935.3 million, net income slumped to $39.3 million from $61.8 million, and diluted earnings per share edged down to 70 cents from $1.10 a year ago.

The company estimated fiscal 2025 capital expenditures to be between $100 million and $110 million.

Walgreens Boots Alliance Inc. eased 0.8% to $10.50 after the struggling pharmacy retailer reported results for the fiscal second quarter of 2025 ending in February.

Sales increased to $38.59 billion from $37.05 billion, net loss shrank to $2.85 billion from a loss of $5.91 billion, and diluted loss per share narrowed to $3.30 from a loss of $6.85 a year ago.

Sales in the first six months of fiscal 2025 climbed to $78.05 billion from $73.76 billion, net loss shrank to $3.12 billion from a loss of $5.97 billion, and diluted loss per share narrowed to $3.61 from a loss of $6.93 a year earlier.

Fila Group slumped 3.5% to 34.450 Korean won after the sporting goods retailer reported lower sales in 2024.

Revenue declined to €621.9 million from €787.9 million, adjusted group net profit edged down to €30.9 million from €40.9 million, and basic earnings per share fell to 61 cents from 81 cents a year ago.

The company proposed a dividend worth €40.8 million, higher than guidance, with a pay-out ratio of 20% to 40%.

Fila estimated 2025 revenue to grow by “low-to-mid single digits,” as well as a mid-single-digit increase in adjusted EBITDA, assuming constant currency and tariffs.

In addition, the company expects free cash flow to equity to be between €40 million and €50 million.