Companies with substantial global operations and reliance on Asian markets for revenue faced uncertainty amid the ambiguous outlook of US-China trade relations
This week, the stock market crashed, with large gambling businesses losing a lot of money as investors worry about President Donald Trump’s changing trade rules. The wider economic slump caused by concerns about a possible recession, has led to a sell-off that has erased trillions in market value.
Gaming Industry Hit Hard Amid US-China Trade Uncertainty
Stock prices of major casino companies and online betting platforms took a hit as investors reacted to Trump’s latest trade policies. Businesses with significant international exposure and those depending on Asian markets for income found themselves at risk due to the unclear future of US-China trade ties.
This follows Trump’s decision to double tariffs on Chinese imports to 20% and slap a 25% tax on goods from Canada and Mexico, although he later pushed back some of these actions until early April.
Trump’s Fox News interview did little to boost investor confidence. He did not rule out a recession, saying instead that the US economy was going through a “period of transition.” His words did not calm traders’ nerves. Market experts cautioned that just the chance of an economic slump was enough to make markets play it safe.
The market downturn had an effect on all sectors. The S&P 500 fell 2.7%, while the Nasdaq 100 experienced its biggest one-day drop since September 2022, tumbling 3.81%. Stocks in the gaming sector, which often react to economic changes, also saw big losses. Big names in the industry, especially those with ties to Macau and other Asian markets, took a hit as worries about global trade made investors nervous.
On Monday, PENN Entertainment shares fell 9.5% ending at $16.55. The stock dropped for the third day in a row, putting it 28.3% under its 52-week peak of $23.08, which it hit on February 14. DraftKings shares also went down by 5.5%, closing at $37.24. MGM Resorts International shares dipped 0.44% finishing at $31.89. Notably and in contrast to the overall decrease, Las Vegas Sands shares went up a bit, rising 0.6% to $45.34.
Traders and Analysts Warn of Recession Risks Under Trump
Market experts linked most of the decline to Trump’s unpredictable trade policies.
New York Stock Exchange trader Peter Tuchman called the day’s trading a “bloodbath.” He blamed the White House’s indecision and mixed messages for the widespread doubt, reported Al Jazeera.
Democratic Senator Elizabeth Warren said that Trump made the economy unstable. Even some members of his own party, like Republican Senator Rand Paul, said that market reactions should not be ignored.
Goldman Sachs and JPMorgan Chase now think a recession is more likely. Their analysts point to extreme economic policies as a big reason for their new predictions. At the same time, the gambling industry faces more trouble because people might spend less if a recession ensues.
Investors are bracing themselves for what is coming next, keeping a close eye on upcoming economic reports and inflation figures to see where the market might go. The gambling industry now faces the task of riding out the financial turbulence while staying profitable in a market that is harder to predict than ever.
