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Takeaways
- The S&P 500 dropped 3.5% on Thursday, April 10, 2025, with the strong rally for stocks in the previous session running out of steam amid escalating trade tensions with China.
- Carmax stock fell as the used-car seller missed its first quarter estimates and suspended the timeline of its long-term goals.
- A rise in gold prices has helped to boost the shares of Newmont, and other mining companies.
Major U.S. equities indexes resumed their downtrend on Thursday, ceding some of the big gains posted in Wednesday's session. Relief over President Trump's decision to postpone higher tariffs on trading partners around the world gave way to concerns about escalating tensions with China, with the White House confirming that the levy on goods from the country now stands at 145%.
The S&P 500 slid 3.5%. The Dow closed the session 2.5% down, while the Nasdaq fell 4.3% due to renewed weakness in tech stocks.
Shares of health care diagnostics and drug discovery services provider Charles River Laboratories (CRL) plummeted 28.1%, the steepest decline of any S&P 500 stock on Thursday. Barclays analysts reduced their price target for the stock after suggesting that potential pharmaceutical tariffs may weigh on industry budgets and stifle Charles River’s performance.
Carmax (KMX), a used-car retailer, reported lower-than expected sales and profits for the fourth quarter of its fiscal year. The company chose not to give specific financial forecasts and has backed away from its previously stated long-term growth goals. It noted that macroeconomic factors may affect the timeline for achieving these objectives. Analysts believe that tariffs may result in higher prices on new and used vehicles.
After yesterday’s explosive rally in semiconductor stocks, downward pressure was resumed on chipmakers on Thursday. A day after securing the S&P 500’s top performance, shares of microprocessor manufacturer Microchip Technology (MCHP) tumbled 13.6%. Shares of power module specialist Monolithic Power Systems (MPWR) also gave back a portion of Wednesday’s strong gains, falling 13.7%.
Warner Bros. Discovery (WBD), a company owned by Warner Bros., lost 12.5% of its value after the China Film Administration announced it would reduce the number American movies imported into China as trade tensions escalated between the world’s largest economies. The entertainment giant announced in late 2017 that it would separate its streaming and film business from its TV business.
Gold futures prices rose by more than 3%, as uncertainty over tariffs boosted demand for precious metals. These are often seen as safe-haven investments during times of economic turmoil. The increase in gold prices helped boost gold-mining shares. Shares of Newmont (NEM), the world’s top gold producer, notched the strongest gain in the S&P 500, jumping 4.5%.
MarketAxess Holdings’ (MKTX), a fixed-income trading platform operator, saw its shares rise 3.5% on Thursday after a slight drop in the previous session. Morgan Stanley analysts upgraded MarketAxess’ stock from “equal” weight to “overweight” earlier this week. They indicated that the need to hedge risk in the current economy could drive more trading volume for exchanges.
Kroger (KR), the company’s shares, gained 3.1% Thursday. In early March, when releasing its most recent earnings report, the operator of America’s largest chain of traditional supermarkets said that it anticipated a relatively low impact from tariffs. They highlighted plans to expand its supply chains and negotiate with suppliers. They also sourced products from countries with lower levies.
