NEWS
Welcome Back to Correction Territory

What a time to start writing the Daily Rip. The market pulled back in the worst day for the S&P 500 since 2020, officially sending equities back into correction territory, as investors priced in tumultuous tariffs from President Trump. Among the few winners, traders flocked to staples and U.S.-based dividend stocks like Coca-Cola, United Health, and McDonald’s own french fry provider, Lamb Weston.

Sounds like a great recipe for getting and treating heart disease. 💘

Meanwhile, the Magificient Seven collapsed more than 6% as a whole, wiping out $1 trillion in market cap. 👀

Today's issue covers tariff fallout, Restoration Hardware’s hard landing, and other pops and (mostly) drops. 📰

Here’s the S&P 500 heatmap. 1 of 11 sectors closed green, with consumer staples (+0.44%) leading and energy (-7.35%) lagging.

And here are the closing prices: 

STOCKS
Russell 2000 Enters Bear Market Territory 🐻 

The largest major index whipped out by tariff worries was the Russell 2000, falling nearly 7% to reach bear market territory. The index has been here before- many times, in fact, for the past 25 years. 😅 

According to CNBC, small-cap stocks have been the primary winners since election day, but on Thursday, they were turning into the biggest losers. Keith Lerner, co-chief investment officer at Truist, told CNBC that smaller firms on the Russell were suffering from the prospect of a softening economy and hurt by their higher interest payments and debt.

The sell-off was concentrated on tech and consumer-heavy stocks: information tech like Upstart, healthcare stocks like RxSight, and retail stocks like Designer Brands and Victoria’s Secret, each fell over 18%.

Less than 80 were in the green, led by international tire seller Goodyear. 🛞 

If anything, Thursday was a day for analysts, who spoke across the financial media and handed out warning notes that the market had further to go.

Professor Jeremy Siegle, Professor at UPenn Wharton, went nearly nuts on Bloomberg Business’s closing show, claiming it might be the worst economic policy decision in one hundred years.

JPMorgan global economist Nora Szentivanyi warned the move could lead to a worldwide recession. UBS Chief U.S. Economist Jonathan Pingle said in a note Wednesday that he expects two quarters of negative GDP growth.

Right on cue, the Atlanta Federal Reserves GDPNow prediction, recently a barer of bad news, came out Thursday afternoon with the same warning: the Fed sees this quarter's GDP growing at a negative rate of -2.8%. 📉 

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