Casino stocks experienced another decline on Friday, though not as severe as the previous day, amidst ongoing concerns about tariffs and their potential impact on the global economy. The drop in stock prices followed the Chinese government’s announcement of a 34 percent tariff on all U.S. imports, a response to President Donald Trump’s recent imposition of broad tariffs on various countries. Economists caution that these tariffs could lead to increased consumer prices, and companies may face higher costs, potentially resulting in hiring slowdowns or increased layoffs.
Federal Reserve Chair Jerome Powell indicated that the Trump administration’s new tariffs are likely to contribute to higher inflation and slower economic growth. This outlook has unsettled investors, including those holding shares in Las Vegas-based casino companies.
Las Vegas Sands Corp. saw its stock drop by 8.35 percent, while Wynn Resorts Ltd. declined by 3.83 percent, MGM Resorts International by 3.73 percent, and Station Casinos’ parent company Red Rock Resorts Inc. by 3.56 percent. Boyd Gaming Corp. shares fell by 2.51 percent, Reno-based Caesars Entertainment Inc. by 2.48 percent, and Golden Entertainment Inc. by 1.44 percent.
On the previous day, the stocks of these seven casino companies fell between 6 percent and 10 percent, with Las Vegas Sands being the only one to experience a further drop on Friday.
Overall, financial markets faced their most severe downturn since the coronavirus pandemic, with the S&P 500 falling nearly 6 percent, the Dow Jones Industrial Average declining by 5.5 percent, and the Nasdaq composite dropping by 5.8 percent.