Shares of parcel delivery company UPS (NYSE:UPS)
fell 8.7% in the afternoon session after President Trump announced "reciprocal tariffs" on all US imports, set at a minimum rate of 10%. From clothing brands and electronics makers to the e-commerce sites that move their goods, companies built on global supply chains took the biggest hit.
Stocks with heavy exposure to Asia were especially hard-hit, as the new tariffs threatened the growth and profits of firms with factories in the region. Vietnam, central to many companies' production plans, faced a 46% tariff. Cambodia and Indonesia were also in the crosshairs, with tariff rates of 49% and 32%. These measures could significantly erode the competitiveness of goods produced in those regions. For example, reduced production volumes would negatively affect the sales growth of all companies benefiting from these manufacturing hubs.
Looking back on air freight and logistics stocks’ Q4 earnings, we examine this quarter’s best and worst performers, including C.H. Robinson Worldwide (NASDAQ:CHRW) and its peers.
Over the past six months, United Parcel Service’s shares (currently trading at $110) have posted a disappointing 17.5% loss while the S&P 500 was down 1.7%. This may have investors wondering how to approach the situation.
The U.S. stock market had a mixed session on Tuesday. The Nasdaq Composite climbed nearly 80 points, or 0.5%, closing at 18,271.86, while the Dow remained largely flat at 42,587.50. The S&P 500 edged up 0.2% to finish at 5,776.65. Amidst these fluctuations, certain stocks grabbed the attention of retail traders and investors throughout the day.
Wall Street’s recovery from its recent technical correction paused for a breather on Tuesday, as investors awaited more clarity on tariff developments and digested a downbeat consumer confidence report.
U.S. Postmaster General Louis DeJoy announced his immediate resignation on Monday, marking a significant shift in leadership for the United States Postal Service amid challenging market dynamics.
