U.S. stock futures pointed to a sharp sell-off on Friday, April 5, as China announced sweeping 34% tariffs on all American goods, escalating the ongoing trade war. The move was in response to President Donald Trump’s reciprocal tariffs, which raised China’s effective tariff rate to 54%.
Apple fell another 5% in premarket trade, continuing its downward spiral this week. According to Evercore ISI estimates, nearly 80% of Apple’s production capacity and 90% of iPhone assembly are based in China, making the company highly vulnerable.
Bank stocks slumped as recession fears mounted. Goldman Sachs and Morgan Stanley dropped 6%, while JPMorgan Chase, Citigroup, and Wells Fargo were down about 5%.
China-focused ETFs also reacted sharply, with the KraneShares CSI China Internet ETF (KWEB) falling 8%, the iShares MSCI China ETF (FXI) down 7%, and the iShares China Large-Cap ETF (MCHI) lower by 5%.
Semiconductor stocks with significant China exposure were hit hard — Marvell Technology, Intel, and Broadcom each lost 7%, while Nvidia and Qualcomm declined 6%.
Boeing plunged 6% due to its reliance on both Chinese exports and components. Similarly, heavy-equipment manufacturers like Caterpillar dropped 7% and Deere declined 5% amid fears of reduced global demand.
Casino stocks with exposure to Macao, including Las Vegas Sands, Wynn Resorts, and MGM Resorts International, all fell between 4–5%.
Lastly, Shell shares were down 5% as oil prices plunged, with Brent crude touching its lowest level since the height of the COVID-19 pandemic.
