A number of stocks fell in the pre-market session after President Trump announced "reciprocal tariffs" on all US imports, set at a minimum rate of 10%.
Markets reacted negatively to the announcement, reflecting deep concerns among investors about the broader economic implications. The tariffs were likely seen as a significant threat to global trade flows, with the potential to slow economic growth, drive up consumer prices, and spark retaliatory measures.
Wedbush analyst Dan Ives captured the prevailing market anxiety, stating, "We would characterize this slate of tariffs as 'worse than the worst case scenario' the Street was fearing."
His comment highlighted how the scope and severity of the tariffs far exceeded Wall Street's expectations, adding a new layer of uncertainty for businesses and investors.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.
Hub Group’s shares are not very volatile and have only had 3 moves greater than 5% over the last year. Moves this big are rare for Hub Group and indicate this news significantly impacted the market’s perception of the business.
Hub Group is down 23.3% since the beginning of the year, and at $33.86 per share, it is trading 36.4% below its 52-week high of $53.20 from November 2024. Investors who bought $1,000 worth of Hub Group’s shares 5 years ago would now be looking at an investment worth $1,555.
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