What Happened?
Shares of networking technology giant Cisco (NASDAQ:CSCO) fell 6.6% in the afternoon session after President Trump announced "reciprocal tariffs" on all US imports, set at a minimum rate of 10%. Markets reacted negatively to the announcement, reflecting deep concerns among investors about the broader economic implications. The tariffs were likely seen as a significant threat to global trade flows, with the potential to slow economic growth, drive up consumer prices, and spark retaliatory measures.
Wedbush analyst Dan Ives captured the prevailing market anxiety, stating, "We would characterize this slate of tariffs as 'worse than the worst case scenario' the Street was fearing." His comment highlighted how the scope and severity of the tariffs far exceeded Wall Street's expectations, adding a new layer of uncertainty for businesses and investors.
The shares closed the day at $57.30, down 7.3% from previous close.
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What The Market Is Telling Us
Cisco’s shares are not very volatile and have only had 2 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
Cisco is down 3% since the beginning of the year, and at $57.31 per share, it is trading 11.7% below its 52-week high of $64.87 from February 2025. Investors who bought $1,000 worth of Cisco’s shares 5 years ago would now be looking at an investment worth $1,467.
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