Trump, Tariffs and Stock Market
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USA TODAY |
Shares of conservative media outlet Newsmax (NYSE: NMAX) traded with extreme volatility today.
Bloomberg L.P. |
Trump announced the steepest American tariffs in more than a century, with a 10% tariff on all exporters to the US and even higher duties on some 60 nations.
Reuters |
So far, Washington has said the base 10% tariffs will go into effect on April 5 and the higher rates on April 9.
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Many factors can cause a stock to surge following its IPO. However, one catalyst tends to drive its long-term performance: profitability. A company needs to make money to support its operations and growth over the long term. If a company continues to lose money, its stock will likely lose value.
Even after crashing down to earth Wednesday, Newsmax is still valued at an extreme premium compared to Fox and the New York Times.
Newsmax stock price crashed 77% on Wednesday after a wild post-IPO rally. Its low share float heightens the stock's volatility.
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At the end of Wednesday's trading, Newsmax shares had fallen to $52.52, a drop of over $180 from Tuesday’s close of $233, marking a loss of 77.5 percent. The network’s market
Newsmax's shares closed with a more-than-eight-fold gain at $83.51 on Monday, partly buoyed by retail interest.
Newsmax lost $55 million in the first half of last year. But its stock surged this week as shares in the company traded on the public market for the first time.
Newsmax CEO and the famously sober lawyer Rudy Giuliani ring in the bell at the NYSE on April 3, 2025. Moments later the Dow dropped 1,500 points, S&P 500 lost 4%, and the Nasdaq Composite slid 5%. But it didn’t stop these brilliant capitalists from celebrating. (Michael M. Santiago/Getty Images)
Bloomberg journalists discuss today's biggest winners and losers in the stock market. Listen for analysis on the companies making news on Wall Street.