US casino stock prices were decimated when the market opened on Thursday following President Donald Trump’s announcement of his ‘Liberation Day’ tariff plan the previous day.
Las Vegas Sands has continued its downward trend, with a 31% drop
Caesars Entertainment hit its lowest point since May 2020, when the COVID-19 pandemic was at its worst for the industry, dropping 9.5% to $23.77. MGM Resorts International and Red Rock Resorts fell similarly, while Wynn Resorts plummeted 10.6%. Las Vegas Sands has continued its downward trend, with a 31% drop in its price over the past six months.
Casino companies were more sensitive to the tariffs announcement than the overall market, with the S&P 500 falling 4.8% and the NASDAQ 6% on Thursday. Pre-market trading ahead of Friday’s session looks calmer as people take stock of the wreckage.
Investors have concerns about the impact that tariffs will have on the average person. They expect that companies facing higher costs will pass on much of these additional expenses to customers through price hikes.
Economists believe jobs could be under threat and people’s discretionary spending will be hit hard, meaning less money spent on travel, gambling, and entertainment, which is bad news for casino companies. The chances of a recession are much higher, especially as many nations are considering retaliatory moves following Trump’s bold play.
