Live: Vanguard S&P 500 ETF (VOO) Plummets 4% as Nike (NKE) and Dell (DELL) Sink

A day following “Liberation Day,” the talk of the town is that investors have been liberated from capital gains taxes. 

The Dow Jones is down 3.72%, the Nasdaq is down more than 5%, and the Vanguard S&P 500 ETF (NYSE: VOO) is down 3.93% as of 10:25 a.m. ET. 

Why is the market selling off?

• Tariffs announced by the Trump Administration are estimated to reduce trade by $900 billion this year. Almost every Wall Street bank is now pulling back economic growth estimates for the year. 
• Tariff rates on other countries announced last night range from 10% to more than 50%. As of 2022, the United States had a weighted-average tariff rate of about 1.5%. However, after Trump’s tariff announcement yesterday the United States would have a weighted average tariff rate of 29%. 
• Another issue driving stocks down today is the fact these tariffs appear to be less of a ‘negotiating tactic’ and something that will be in place for a prolonged period of time. For example, both Vietnam and Israel announced large cuts to tariffs on U.S. goods, but saw reciprocal tariff rates of 46% and 17%, respectively. 

What Stocks Are Falling in the Vanguard S&P 500 ETF?

What stocks in the VOO are seeing the biggest declines today?

• Retailers and Clothing: Williams-Sonoma is down 18.1%, Deckers Outdoor down 16.9%, Ralph Lauren down 16.9%, and Nike down 13%. Each of these companies faces not only reduced consumer spending if a recession happens but also have overseas supply chains that would see significant tariff impacts if these tariffs take effect as presented on April 9th. 
• Consumer Electronics: Dell is down 15.3%, HP is down 15.7%, and Best Buy is down 15.8%. Once again, these companies not only face reduced consumer demand but significant tariffs on their products. Apple was down 9% in early trading but has trimmed its losses to 7.9%. 

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