What Happened?
Shares of enterprise technology company Hewlett Packard Enterprise (NYSE: HPE) fell 14.2% 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 $13.67, down 15.3% from previous close.
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What The Market Is Telling Us
Hewlett Packard Enterprise’s shares are quite volatile and have had 15 moves greater than 5% over the last year. But moves this big are rare even for Hewlett Packard Enterprise and indicate this news significantly impacted the market’s perception of the business.
Hewlett Packard Enterprise is down 36.1% since the beginning of the year, and at $13.73 per share, it is trading 43.8% below its 52-week high of $24.42 from January 2025. Investors who bought $1,000 worth of Hewlett Packard Enterprise’s shares 5 years ago would now be looking at an investment worth $1,476.
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