Latest News

China's retaliation against Trump tariffs is a blow to tech and bank stocks

U.S. banks, oil companies, and tech giants all extended their losses on Friday, after Beijing responded with an additional 34% duty on U.S. products. This heightened investor concern over a escalating trade war, which has led to fears of a global recession.

Beijing's tariffs will go into effect on April 10. Beijing also announced restrictions on the export of heavy and medium rare-earths and added 11 U.S. companies to its "unreliable entities" list.

Tesla and Apple, two of the companies that have the most revenue exposure to China, both saw their shares plummet by more than 6%. Alphabet and Microsoft also saw their shares fall sharply.

Following the countermeasures, shares of banks continued to decline. Fears have been affecting the industry that a dispute over trade could reduce consumer confidence, lower spending, weaken demand for loans and increase fees charged by advisors.

JPMorgan Chase, which is the largest U.S. Bank by assets, fell 7.3%. Wall Street giants Goldman Sachs, Morgan Stanley and Citigroup all fell by 7% or 6% respectively.

Crude oil prices have suffered further losses, after already being hit by the expected OPEC+oil production increase in May.

Exxon dropped 4.8% while Chevron fell 4%. SLB, the top oilfield services company, dropped 5.8%. Marathon Petroleum, the largest U.S. refining company by volume, also fell 4.6%.

The tariffs imposed by China, which is a major oil-importer, could increase concerns about a slowdown in fuel demand.

"The trade conflict escalated, fears of recession are on the rise, and as a result, oil demand growth will take a significant hit," said Tamas Variga, an analyst at PVM.

GE Healthcare shares fell 6.9% in premarket trading, the largest drop among medical equipment makers. This was after China announced restrictions on exports of a rare earth metal used in MRI scanners.

Ford and General Motors shares in Detroit were down by about 3.6% and 3%, respectively.

The automakers rely on a global supply chain that is complex. GM and Ford, meanwhile, see China as a major growth market for electric vehicles.

(source: Reuters)