US markets endured their worst losses since the pandemic after the Trump administration’s ‘Liberation Day’ announcement of wide-ranging tariffs (2 April) gave investors a real jolt.
It is difficult for markets to assess what the lasting impact of these changes will be at this point, particularly if they prove open to negotiation but, in the mean time, the uncertainty has made for extremely choppy trading.
The VIX index which measures future expectations of market volatility is up nearly 60% over the last five days.
Companies whose supply chains are reliant on Asia were particularly vulnerable to the selling with Apple (AAPL:NASDAQ) and Nike (NKE:NASDAQ) among the largest fallers.
While these companies have been diversifying their manufacturing base out of China, the reciprocal tariffs have hit countries like Taiwan, Vietnam, India and Thailand hard too.
Among the few big risers during a trying week for US stocks were food processing company Lamb Weston (LW:NYSE) which bounced from lows as it beat quarterly estimates thanks to cost cutting.
PVH Corp
PVH Corp’s (PVH:NYSE) shares bounced back into fashion this week, rallying 15.3% to $76.6 after the company behind the iconic Calvin Klein and Tommy Hilfiger brands delivered (31 March) forecast-beating fourth quarter results and launched a fresh $500 million buyback.
While quarterly revenue dipped 5% year-on-year to $2.37 billion, this topped the $2.34 billion Wall Street was calling for, while gross margins reached record levels and earnings per share of $3.27 exceeded guidance of $3.05 to $3.20 with self-help measures bearing fruit.
For full-year 2025, Stefan Larsson-led PVH forecast revenue will be flat to slightly up on 2024 and projected earnings per share in the $12.40 to $12.75 range.
Larsson insisted PVH Corp remains ‘relentlessly focused on fuelling our brand-building consumer flywheel to unlock our full potential around the world. In North America, we will continue to drive a double-digit EBIT margin, in Europe our Fall ‘25 order books are back to growth, and in Asia Pacific we will continue to focus on driving strong consumer engagement across our diversified business in the region.’
TESLA
Electric vehicle maker Tesla (TSLA:NASDAQ) reported plunging first quarter sales on 2 April amid speculation over whether owner Elon Musk will leave his post as head of the (Doge) department of government efficiency at the Trump administration.
Tesla delivered 336,681 cars in the three months of this year fewer than the 390,000 forecast by analysts and 387,000 in the same period last year.
Sales were particularly poor in Europe, falling 49% in the first two months of 2025, reflecting a potential consumer backlash against the Tesla brand after Musk's increased involvement in the political sphere.
Tesla also is fighting for market share in the face of stiff competition from Chinese rival BYD (1211:HKG) which saw annual revenue recently top $100 billion for the first time (27 March).
BYD's Hong Kong listed shares have gained more than 45% year-to-date, while in contrast Tesla shares are down nearly 35% so far this year.
Finally, there is the question of Trump’s tariffs and how that will impact Tesla in the long run. Tesla, which manufactures its US models in the US, might not be as immediately exposed to Trump’s tariffs as other US car makers like Ford (F:NYSE) and General Motors (GM:NYSE) but only time will tell the full impact.
COREWEAVE
It’s only been listed a week but it’s already been a wild ride for CoreWeave (CRWV:NASDAQ) after its lacklustre IPO (initial public offering) on 28 March 2025.
The cloud computing software infrastructure play backed by Microsoft (MSFT:NASDAQ) and Nvidia (NVDA:NASDAQ), ended its first day flat on its downsized $40 a share flotation, disappointing the legion of investors who have high hopes for the company and its stock.
Cue a massive surge earlier this week, rallying 65% before Donald Trump’s ‘Libertaion Day’ bombshell pulled the stock down again, as it did for most tech stocks.
CoreWeave, in theory, is set up nicely, focused on GPU (graphics processing unit) technology that powers artificial intelligence data centres. It’s biggest customers are Microsoft and Nvidia, whose futures are crucially tied to AI’s, while there has been talk of a big deal with Alphabet (GOOG:NASDAQ) in tech circles.
Private equity firm Manhattan Venture Partners is a big backer too, recently stating that the ‘fundamental demand for high-performance chips remains and CoreWeave is well positioned to benefit.’
Of course, Trump tariff roulette has been a major factor in CoreWeave’s volatile start to listed life but so too its tight float, with only a small number of shares publicly tradeable, which could make for a bumpy ride down the line.
