Key Takeaways

Major U.S. equities indexes suffered heavy losses for the second straight day as China retaliated against President Donald Trump's tariffs.

The escalation of the trade war overshadowed signs of resilience in the latest jobs report, which showed higher-than-expected job gains , although the unemployment rate ticked higher.

The S&P 500 descended 6.0% on the final day of a tumultuous trading week. The Dow closed Friday's session down 5.5% and Nasdaq was down 5.8%.

China's tariff moves battered stocks in a variety of sectors. Shares of GE HealthCare ( GEHC ), the medical technology company that completed its spinoff from General Electric in 2023, plunged 16.0%, losing the most of any S&P 500 stock . According to analysts from BTIG, China accounted for 12% of GE HealthCare's sales in fiscal 2024. However, the analysts noted that roughly 70% of what the company manufactures in China is sold in the country, and it remains to be seen how China's Ministry of Commerce will classify products that are made locally by multinational companies like GEHC.

Oil prices plunged as worries about the impact of trade tensions on global economic growth exacerbated concerns about production increases from OPEC+ , a group of major producers led by Saudi Arabia and Russia. Shares of exploration and production company APA Corp. ( APA ) dropped 14.4%, while shares of oilfield services firm Baker Hughes ( BKR ) fell 13.3%.

Oil was not the only commodity facing price pressure. Uncertainties about the global economy contributed to a plunge in copper futures prices. Even gold, which is often seen as a safe-haven investment in times of market turmoil, saw its price tick downward, which may occur when investors take profits in the precious metal to cover losses in other assets. Shares of Freeport-McMoRan ( FCX ), which produces both metals, lost 13.0%.

Citi analysts included Micron Technology ( MU ) on a list of semiconductor stocks that could see the most adverse impact from China's tariffs, and shares of the data and memory storage provider tumbled 12.9%. Analysts suggested that companies like Micron with relatively lower margins might experience outsized effects amid likely margin volatility. The Citi team warned that, should the tariffs cause a recession, semiconductor stocks could face a downside risk of 20% or more.

Shares of several footwear and apparel makers regained ground as Trump reportedly engaged in tariff negotiations with leaders from Vietnam. The step higher on Friday marked a rebound from steep declines in the prior session driven by concerns about tariffs on imports from the Asian nation, where many shoe and clothing companies have manufacturing footprints. Shares of Ugg and Hoka parent Deckers Outdoor ( DECK ) gained 5.1%, logging the top performance in the S&P 500, while Nike ( NKE ) shares added 3.0%. Shares of yoga attire maker Lululemon ( LULU ) were up 3.2%.

Homebuilder stocks also advanced as tariff-related concerns about the economy's trajectory pushed interest rates lower, with the 10-year Treasury yield dropping below 4%. Shares of D.R. Horton ( DHI ) and NVR ( NVR ) were up 4.5% and 4.2%, respectively, while other homebuilding industry stocks also notched gains.

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