Tech, bank stocks bear the brunt as China retaliates to Trump tariffs

(Reuters) – U.S. tech heavyweights, banks and oil majors extended losses on Friday after Beijing retaliated with additional duties of 34% on U.S. goods, amplifying investor concerns over an escalating global trade war that has stoked fears of a recession.

Beijing’s tariffs are set to go into effect April 10. The country also announced controls on exports of medium and heavy rare-earths, and added 11 U.S. entities to the “unreliable entity” list.

Shares of Tesla (TSLA) and Apple (AAPL) – among companies with the biggest revenue exposure to China – both slumped more than 6%. Alphabet (GOOG, GOOGL), Microsoft (MSFT) and Meta (META) also fell sharply.

Banks’ shares extended their declines following the countermeasures. The industry has been clouded by fears that a trade dispute could temper consumer confidence, reduce spending, weaken loan demand and pressure fees from advising on deals.

JPMorgan Chase (JPM), the biggest U.S. bank by assets, sank 7.3%. Wall Street titans Goldman Sach (GS)s and Morgan Stanley (MS) dropped 7% and 6%, respectively.

Crude prices, which were already feeling the brunt of an expected OPEC+oil output hike in May, added to the losses.[O/R]

Oil majors Exxon fell 4.8%, while Chevron declined 4%. Top oilfield service company SLB dropped 5.8%, and the biggest U.S. refiner by volume, Marathon Petroleum, fell 4.6%.

Tariffs from China, a major oil importer, could add to worries over slowing fuel demand.

“The trade war escalated, recession fears rise and consequently oil demand growth is to take a sizeable hit,” said Tamas Varga, analyst at PVM.

GE Healthcare’s stock slid 6.9% premarket, leading the losses in shares of medical equipment makers, after China also announced export controls on a rare-earth metal that is used in MRI scans.

Shares of Detroit automakers Ford and General Motors were down about 3% and 3.6%, respectively.

Automakers depend on a complex global supply chain for parts, while GM and Ford also count on China as a key growth market for their electric vehicles.

(Reporting by Deborah Sophia in Bengaluru, Seher Dareen, Niket Nishant, Nathan Gomes, Manas Mishra; editing by Arpan Varghese and Sriraj Kalluvila)