Tariff Shock Wipes $318 Billion From Sports Stocks in a Week

The drop in a company's market cap can have real consequences on its ability to raise money and attract investors.

The stock market reaction to the global Trump tariffs has chopped $318 billion in value from sports stock in a week, according to Sportico data.

That’s nearly 10% of the value of the sector. Sports stocks were worth $3.36 trillion last Wednesday. They’re worth $3.04 trillion today. That bloodletting is after accounting for the market’s bounce late Monday and into Tuesday. U.S. stocks fell more than 15%, peak to trough, from April 2 to the lows at the start of trading this Monday. They recovered slightly to be down about 11.5% through Tuesday, according to the Dow Jones Total Stock Market Index, which tracks every U.S. listed stock with a readily available price.

The drop in sports stocks isn’t a surprise; they largely sit in the consumer discretionary bucket of stocks, which is seen as vulnerable to tariffs. “Industries like retail, luxury goods, entertainment and travel are typically negatively impacted in market downturns, as discretionary income and spending tend to dry up. These goods and services are not considered essential like their consumer staples peers,” LPL chief chief equity strategist Jeffrey Buchbinder said in a research note Tuesday. “Many companies in this sector lack pricing power, as goods and services are discretionary and therefore typically expendable in a weaker economy.”

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