President Trump Threatens More Tariffs and Spooks the Stock Market

Wynn Resorts and other trade-sensitive stocks fall.

3 min read

Opinions expressed by Entrepreneur contributors are their own.

President Trump’s saber rattling in trade negotiations with China scared investors this morning, but cooler heads prevailed and stock prices recovered most of their early losses.

The President threatened to increase the current ten percent tariff on $200 billion of Chinese goods to 25 percent by Friday if no deal is reached. He suggested the tariffs might soon apply to the rest of Chinese exports — some $325 billion — as well. Stock prices plunged with the Dow falling by nearly two percent in early trading.

Stock prices recovered through the rest of the day, however, as investors realized that the Chinese trade delegation was still coming to Washington to resume negotiations this week.

The Dow index ended the day down 0.25 percent while the S&P 500 and Nasdaq Composite indexes fell 0.45 percent and 0.5 percent respectively. The Entrepreneur Index™ declined 0.31 percent, with trade-sensitive stocks posting the biggest losses.

Casino-operator Wynn Resorts, hyper-sensitive to China and to trade relations with China, had the biggest decline on the Entrepreneur Index™ today, falling 4.07 percent. With its gaming license in Macau, where it derives more than 70 percent of its revenue, up for renewal soon, an ongoing trade war with China could be disastrous for the company. The stock is up 42.6 percent this year in large part because of optimism about a trade deal with China.

Other companies with big exposures to the Chinese market were also down sharply. Cosmetics maker Estee Lauder Companies, which has a large and fast-growing Asia Pacific business, was down 2.51 percent. PACCAR Inc. had record global truck deliveries in the first quarter. It’s stock fell 2.73 percent today.

The clothing makers and retailers, many of whom sell and source products in China, were also down today. Ralph Lauren Corp. (-2.34 percent), Under Armour Inc. (-1.8 percent) and Gap Inc. (-1.23 percent) all fell.

The technology sector was generally weak, with chip-makers NVIDIA Corp. (-1.73 percent) and Analog Devices (-1.73 percent) posting the biggest declines. Alphabet Inc., up 0.25 percent, was the only FAANG stock on the index to post a gain.

Related: 4 Simple Tips That Will Get Big Results for Your Business on Google Search

TripAdvisor Inc. shares had the biggest increase in the sector, rising 2.07 percent.

Tyson Foods beat both earnings and revenue estimates by a good margin and saw its shares jump 2.61 percent, the biggest gain on the Entrepreneur Index™ today. One of the largest meat producers in the world, Tyson also announced it would introduce its own plant-based meat substitute products this summer. The company recently sold its investment in Beyond Meat, which went public last week.

Fellow food-maker J.M. Smucker Company was also up nicely, rising 1.3 percent and setting a new 52-week high today.

Regeneron Pharmaceuticals was up 2.18 percent as investors anticipate good financial results when the company reports earnings before the market opens tomorrow. The stock is down 7.8 percent so far this year.

Other good gains on the index today included Intercontinental Exchange (1.58 percent), mall real estate investment trust Macerich Company (1.29 percent) and Universal Health Services (1.21 percent).

The Entrepreneur Index™ collects the top 60 publicly traded companies founded and run by entrepreneurs. The entrepreneurial spirit is a valuable asset for any business, and this index recognizes its importance, no matter how much a company has grown. These inspirational businesses can be tracked in real time on


more recommended stories

  • How Entrepreneurs Can Manage Their Health Like They’re Managing a Fortune 500 Company

    The principles of building a billion.

  • The Most Important Trait Shared by Successful Athletes and Entrepreneurs

    Trying to becoming a professional baseball.

  • How the ‘Change Generation’ Is Motivating Businesses to Commit to Sustainability

    People under age 30 identify “climate.

  • Landmark Study Shows CBD Could Treat Heroin Addiction

    Addicts given CBD were much more.

  • Can Social Media Have Negative Effects on the Brain?

    May 24, 2019 2 min read.

  • Elon Musk Received the Highest CEO Compensation Package Ever, and 27 Other Crazy Things We’ve Learned About the SpaceX and Tesla CEO

    The founder of Tesla, SpaceX and.

  • Cannabis Investing Tips for Non-Millionaires

    Want to invest in the cannabis.

  • Stock Market Falls as Trade War Between the U.S. and China Gets Nastier by the Day

    A deal between the world’s two.

  • How Philanthropy Helped Build This Billion-Dollar Liquor Brand

    Taylor Berry, Chief Marketing Officer of.

  • Wall Street Analysts Are Extremely Bearish on Tesla. Here’s Why.

    Tesla falls while the Entrepreneur Index™.

  • The 7-Step Guide To Finding the Right Clients and Avoiding the Ones Who Waste Your Time

    The right client base is the.

  • Now Is the Time to Press Even Harder for Immigration Reform

    The case for incentivizing U.S.-educated, foreign-born.

  • Chip Makers Bounce Back After U.S. Eases Restrictions on Chinese Telecom Giant Huawei Technologies

    Plus, investors had no appetite for.

  • Will Your Product Launch Be a Success? 4 Signs It Won’t Be.

    The truth is, most product launches.

  • A Beginner’s Guide to Starting and Marketing an App

    First-timers in app development tend to.

  • 12 Passive-Aggressive Phrases That Can Destroy Your Business

    Maybe you think you’re being polite,.

  • Cannabis Shops Linked to Lower Crime, Increased Property Values

    A store selling legal marijuana is.

  • What Exactly Is the Biohacking Movement?

    These shifts in mindset, diet and.

  • Snag These Premium Bang & Olufsen Headphones for Nearly Half Off

    Bang & Olufsen’s H4 Bluetooth Over-Ear.

  • These Presentation Templates Can Help You Make a Better Impression

    ShapeSlide’s 40-in-1 Presentation Bundle makes every.

  • Why Entrepreneurs Should Believe They Are Unstoppable

    Josh York, CEO of Gymguyz, talks.

  • 4 Instagram Best Practices for Increasing Sales

    Users are shifting from editorial to.

  • How to Calculate Gross Profit

    Know whether your business is making.

  • Tesla Stock Falls Hard Despite Elon Musk’s Claim That It Will Eventually Have $500 Billion Market Cap

    Plus, Under Armour stock jumps based.

  • Buying Into These Myths Can Make for Bad Hiring Decisions

    Every company can point to a.

  • Technology Stocks Lead Market Higher Despite Another Tesla Crash

    Tesla shares were down after a.

  • 7 Tips for Network Marketing Success

    There are six key elements you.

  • 10 Things You Didn't Realize Were Invented in the 1970s

    From the first mobile phone to.

  • 18 Ways for Digital Nomads to Make Money

    All you need is a laptop,.

  • SpaceX Is Building Another Starship in Florida

    The competition is on. May 15,.

  • Entrepreneur Index™ Rises as Fears of Trade War Dissipate

    The technology sector leads the rebound,.

  • 25 Interesting Facts You Should Know About Chick-fil-A

    One interesting fact about Chick-fil-A? By.