Gap helped drag the market down even though the retailer reported stronger profit and revenue for the latest quarter than analysts expected. The company behind Banana Republic and Old Navy fell 19% after saying tariffs on imports from China and other countries could add up to $300 million to its costs this fiscal year. It has strategies set to mitigate up to half of that before it hits its profits.
This week and month on Wall Street have been dominated by questions about what will happen with Trump’s tariffs, which investors worry could grind the economy into a recession, erode companies’ profits and layer even more challenges on households who are already sick of inflation.
But the tariffs remain in place for now while the White House appeals the ruling by the U.S. Court of International Trade, and the ultimate outcome is still uncertain. Trump also briefly shook markets shortly before the U.S. stock market opened for trading Friday, when he accused China of not living up to its end of the agreement that paused their tariffs against each other.
“So much for being Mr. NICE GUY!” Trump said on his Truth Social platform.
The impact was limited though, and futures for U.S. stock indexes quickly pared much of their losses. Since Wednesday’s ruling, analysts and investors have been saying Trump and his administration would likely find new avenues to impose tariffs on trading partners.
Trump has said he’s using tariffs to bring manufacturing jobs back to the United States and that U.S. households and businesses may feel some pain in the process.
On the winning side of Wall Street was Ulta Beauty, which climbed 14.5% after the retailer reported stronger sales and profit than analysts forecast and raised the top end of its forecasted range for revenue this fiscal year. That was even though CEO Kecia Steelman called the operating environment “fluid.”
Red Robin Gourmet Burger soared 75.7% after reporting a profit for the latest quarter, when analysts expected a loss.
Shares of SharpLink Gaming rose another 51% to bring its gain for the week to a whopping 1,680% after the marketing company said it would raise $425 million to buy the cryptocurrency on the Ethereum blockchain. The company delivers leads to U.S. sportsbooks and global casino companies and has been expanding into the global crypto gaming market.
The yield on the 10-year Treasury edged down to 4.42% from 4.43% late Thursday.
The Fed has left its benchmark borrowing rate steady at its last three meetings, in part due to uncertainty about how tariffs will impact inflation.
In stock markets abroad, European indexes rose modestly while Asian markets fell.
