Dow Jones Today: DIA ETF Down 2%, Amazon (Nasdaq: AMZN) and American Express (MYSE: AXP) Drop

It’s been a wild few days on the market.

After seeing trillions of dollars wiped off of the market, President Trump offered some reprieve, sending the Dow up 8% or by 2,962 points. The tech-heavy NASDAQ closed up 12%, or by 1,857 points, as the S&P 500 tacked on nearly 10% or 474 points.

Except for China, tariffs have been dropped to 10% for the next 90 days for hopeful negotiations. All of which allowed wary investors to breathe again.

Quite a day.

Then, just this morning, the European Union announced a similar 90-day reprieve – just days before launching tariffs against the U.S.

“We took note of the announcement by President Trump. We want to give negotiations a chance,” European Commission President Ursula von der Leyen said, as quoted by CNBC. “If negotiations are not satisfactory, our countermeasures will kick in. Preparatory work on further countermeasures continues. As I have said before, all options remain on the table.”

Of course, it’s all welcomed news.

But there’s still a good deal of uncertainty with the standing 125% tariff on China.

“The increase in China tariffs but delay in others leaves the effective tariff rate at 23%, at historical highs,” Michael Gapen, Morgan Stanley chief U.S. economist said, as quoted by CNBC. “Delays help, but do not reduce uncertainty.”

It’s Why the Broader Markets are Slipping Again

At the open, the SPDR Dow Jones Industrial Average ETF (NYSEARCA:DIA) is down about 2% on the day. It’s also why stocks like Amazon (NASDAQ:AMZN) and American Express (NYSE:AXP) are down.

Amazon

At the open, shares of Amazon are down about $6.60, or 3.5%. Not only is the stock being dragged lower with the broader market, but it’s also taking a hit over sky-high Chinese tariffs.

According to The Globe and Mail, “According to a report from Reuters, Chinese companies selling products on Amazon are planning to either raise their prices to American consumers or even quit the U.S. market altogether. It was reported that some sellers had already hiked prices by up to 30% and lowered spending on Amazon advertising fees. Other markets they are looking to switch their products to include Canada, Mexico and Europe.”

That’s not great news considering that China is home to about half of all Amazon sellers.

American Express

Shares of American Express are down about $12, or 4.5% on the day.

While analysts at Bruyette & Woods reiterated an Outperform rating with a $360.00 price target on the stock, it’s not enough to stop the pullback. Unfortunately, the tariff fears did ignite consumer spending concerns, higher inflation fears, and worries about a potential recession on the horizon. All of which could negatively impact discretionary spending.

However, American Express is still a solid long-term dividend-paying opportunity that’s well off its highs, with insider buying to boot. Director Michael J. Angelakis paid $1 million on March 7 for 3,700 American Express shares at an average price of $269.89 each. 

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