U.S. President Donald Trump recently announced a new round of tariffs on global imports, leading to the most severe stock market downturn since the COVID-19 pandemic in 2020, with casino operators' stocks being hit hard.
Casino Operators' Stock Prices Plummet
Following the announcement of the new tariff policy, major casino operators' stock prices fell sharply, exceeding the overall market index. Wynn Resorts Ltd. saw a 10.62% decrease in stock price, closing at $72.88; Caesars Entertainment Inc. fell by 9.52%; Red Rock Resorts Inc. by 9.43%; MGM Resorts International by 9.27%; and Golden Entertainment Inc. by 9.1%. Las Vegas Review-Journal
Even companies with more diversified operations were not spared. Although Las Vegas Sands Corp., which primarily operates casinos in Asia, saw its stock price fall by 6.74%; Boyd Gaming Corp.'s stock price fell by 6.24%, closing at $63.36.
Market Reaction to the New Tariff Policy
President Trump announced a 10% tariff on imported goods from 185 countries, aimed at reducing the U.S. trade deficit. He stated on social media that although the market might fluctuate, these measures are necessary, saying "sometimes you have to take the medicine to solve the problem."
However, this decision triggered a severe market reaction. The Dow Jones Industrial Average fell by about 4%, the S&P 500 by nearly 6%, and the Nasdaq Composite by nearly 5%.
Economists' Concerns
Billionaire hedge fund manager Bill Ackman warned that these tariffs could lead to an "economic nuclear winter" and urged a 90-day pause for negotiations to prevent further economic impact.
Meanwhile, JPMorgan predicts that the U.S. economy might enter a recession by 2025 due to the impact of the tariffs, while Goldman Sachs believes there is a 45% chance of recession.
Global Market Chain Reaction
The U.S. tariff policy also triggered a chain reaction in global markets. Asian markets fell sharply, with Japan's Nikkei 225 index dropping nearly 8%, and significant declines in the stock markets of South Korea and Australia. AP News
China, as a major trading partner, announced retaliatory tariffs against the U.S., further intensifying market tensions.
Overall, the Trump administration's new tariff policy has caused severe fluctuations in global markets, particularly affecting U.S. casino operators and other businesses reliant on international trade.
