President Trump’s newly announced tariff policy has begun to reshape global markets. The tariffs, which impose higher duties on goods from many of America’s largest trading partners, range as high as 46%. This has led to a significant drop in stock markets worldwide, described as the worst since the 2020 COVID shock. Over two trading sessions, the S&P 500 fell by 10.5%, while the tech-heavy NASDAQ dropped 11.5%. Major tech stocks like Apple (NASDAQ:AAPL) and Amazon (NASDAQ:AMZN) were heavily affected, with Apple losing 16% and Amazon dropping nearly 13%.
Despite these losses, analysts at major Wall Street banks remain optimistic about the companies’ fundamentals. Apple, valued at $2.83 trillion, and Amazon, at $1.81 trillion, continue to lead the market. Strategies such as price adjustments, supply chain optimization, and leveraging domestic production are seen as potential mitigations for the tariff impact.
For Apple, Bank of America analyst Wamsi Mohan suggests multiple strategies to counteract tariff effects, including raising product prices, optimizing supply chains, and appealing for tariff exceptions. Mohan maintains a Buy rating on AAPL shares with a $250 price target, indicating a ~33% gain over the next 12 months.
Amazon faces challenges due to its reliance on third-party sellers, many sourcing from China. Goldman Sachs analyst Eric Sheridan believes Amazon can mitigate tariff impacts through vendor negotiations, price adjustments, and shifts in product mix. Sheridan assigns a Buy rating to AMZN with a $255 price target, suggesting a 49% gain.
— new from TipRanks