China's stock market faced significant declines on Friday after the nation vowed to retaliate against U.S. President Donald Trump's latest threat of imposing an additional 10% tariff on Chinese goods. This announcement triggered a wave of selling in Chinese stocks, with major players such as Alibaba and Nio feeling the brunt of the impact.
Alibaba's shares plummeted by more than 4% in response to the looming trade tensions. PDD Holdings and Nio also experienced losses, each falling nearly 4%. The market's reaction highlights the ongoing strain in U.S.-China relations and the potential economic repercussions of escalating tariffs.
In addition to the turmoil in Chinese stocks, several U.S. companies reported disappointing earnings and forecasts, further contributing to market instability. Duolingo's shares plunged approximately 9% after the company issued guidance for adjusted EBITDA that fell short of analysts' expectations. This drop raised concerns among investors about the company's growth trajectory.
NetApp, a key player in the technology sector, saw its stock sink 15% following a fiscal third-quarter report that revealed softer-than-expected revenue. The company reported $1.64 billion in revenue, falling short of the $1.69 billion analysts had anticipated. As a result, investors reacted swiftly, selling off shares in response to the disappointing figures.
Nvidia's stock also faced downward pressure, with shares falling around 2%, extending a previous loss of 8.5%. The semiconductor giant's struggles reflect broader issues within the tech sector as investors grapple with economic uncertainties.
On a more positive note, Autodesk reported strong fourth-quarter results that exceeded Wall Street's estimates, leading to a slight increase of around 1% in its shares. This performance stands in stark contrast to other tech stocks that have faced recent headwinds.
Logitech International, however, did not fare as well. Following a downgrade to underperform from neutral by Bank of America, the company's stock fell more than 3%. This downgrade reflects growing concerns about Logitech's ability to maintain its competitive edge in a rapidly evolving tech landscape.
SoundHound AI emerged as a bright spot in the market, with its stock rising by 1% after posting fourth-quarter revenue of $34.5 million, surpassing analysts' predictions. This positive performance highlights the potential for growth within the artificial intelligence sector amid broader market challenges.
HP Inc. also encountered difficulties, with shares falling 3% after the company issued second-quarter guidance that was softer than expected. The guidance reflected the costs associated with diversifying its supply chain outside of China, indicating a strategic shift that may take time to yield positive results.
Li Auto experienced a decline of around 5%, reflecting investor concerns about the electric vehicle market's volatility. Similarly, Dell Technologies’ stock dropped nearly 7% after the company's fourth-quarter revenue of $23.93 billion missed the consensus estimate of $24.56 billion. This shortfall raised alarms about Dell's performance amid fierce competition in the tech sector.
Walgreens’ shares fell about 3% following a downgrade by Deutsche Bank to sell. This downgrade has raised questions about Walgreens' ability to navigate the evolving retail landscape effectively.
In addition to these developments, Rocket Lab forecasted an EBITDA loss between $33 million and $35 million, exceeding analysts' expectations of a $28 million loss. This forecast reflects ongoing challenges in the space industry and has led to increased scrutiny of Rocket Lab's financial health.
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