Why Nike Stock Rose in a Brutal Day for the Market
Nike (NYSE: NKE) stock managed to post gains Friday despite another big sell-off for the broader market. The company's share ended the day's trading up 3%. The S&P 500 (SNPINDEX: ^GSPC), Nasdaq Composite (NASDAQINDEX: ^IXIC), and Dow Jones Industrial Average (DJINDICES: ^DJI) fell 6%, 5.8%, and 5.5%, respectively.Stocks sold off again today as investors assessed the unfolding outlook on tariffs, but Nike was able to close the day in the green thanks to what could be a key development on that front. President Trump said that he had a productive call on tariffs with Vietnam's leaders, and investors are hoping that could open the door for the footwear and apparel giant to see mitigated headwinds.In a message posted to social media today, President Trump said that he had a "very productive call" with Vietnam's General Secretary To Lam. According to Trump, Lam expressed interest in reaching a new trade agreement with the U.S. that would allow for tariffs on goods from his country to be reduced to zero. Nike has already shifted much of its production from China to Vietnam in response to trade and geopolitical issues, but the Trump administration's new import-tax policies are threatening to undo benefits from the shift. Continue reading
Nike (NYSE: NKE) stock managed to post gains Friday despite another big sell-off for the broader market. The company's share ended the day's trading up 3%. The S&P 500 (SNPINDEX: ^GSPC), Nasdaq Composite (NASDAQINDEX: ^IXIC), and Dow Jones Industrial Average (DJINDICES: ^DJI) fell 6%, 5.8%, and 5.5%, respectively.
Stocks sold off again today as investors assessed the unfolding outlook on tariffs, but Nike was able to close the day in the green thanks to what could be a key development on that front. President Trump said that he had a productive call on tariffs with Vietnam's leaders, and investors are hoping that could open the door for the footwear and apparel giant to see mitigated headwinds.
In a message posted to social media today, President Trump said that he had a "very productive call" with Vietnam's General Secretary To Lam. According to Trump, Lam expressed interest in reaching a new trade agreement with the U.S. that would allow for tariffs on goods from his country to be reduced to zero. Nike has already shifted much of its production from China to Vietnam in response to trade and geopolitical issues, but the Trump administration's new import-tax policies are threatening to undo benefits from the shift.
