Rollercoaster week for US-listed firms following Trump’s tariff plans
DraftKings, Flutter, and fellow public businesses experience whipsaw price movements during the week, with the worst of the sell-offs now seemingly in the rear-view mirror
US-listed gambling companies caught up in the economic maelstrom following the start of President Donald Trump’s tariff war have seen shares prices mostly rise today, Friday, April 11.
The tariff policy, which was announced on April 2, sent a shockwave across global stock markets, with shares plummeting to levels not seen since the pandemic in 2020.
Some further downturns came earlier this week, before a return to growth, with Trump also having applied a 90-day pause to global tariffs to all nations – bar China.
In fact, the fight between Washington and Beijing has rumbled on this week, with China having raised its own import tax against US goods to 125%.
The US initially applied a 34% rate to China last week, with China retaliating with their own 34% rate.
The US then upped tariffs to 104%, followed by China raising theirs against the US to 84%. The Chinese government then approved a 125% rate.
Major indices across the globe have settled in the past five days after what was a disaster backend of last week.
Hong Kong’s Hang Seng is up 0.9% and, while Japan’s Nikkei slid down 3% today, it is up 1.3% over the week.
In Europe, London’s FTSE 100 is down 1.5%, France’s CAC 40 is up 4.2%, the German DAX has risen some 8.4%, and the IBEX 35 in Spain has crept up 1.6%.
Entain, the JV partner for BetMGM, has seen its shares rise 12.1% over the past five days in London.
As markets opened in the US today, stocks remained flat in early trading. DraftKings was down 0.4%, with its stock having risen almost 15% over the past five days.
Flutter’s US shares were also up, albeit minimally, with its total stock having jumped almost 12% since Monday.
The FanDuel parent company has recovered some of its lost market cap, which dipped to around $35bn in the middle of the tariff turmoil. It now sits at $40.9bn, but still way off the $50bn marker it set in February.
Caesars Entertainment (up 12.3% for the week) initially saw its shares slip this morning similar to Rush Street Interactive, which is up 15% for the week.
PENN Entertainment has had a less successful time with investors this week, up just 1.6% and still down 14% on the past month. MGM Resorts International was up by 1% this morning.
Yesterday, the S&P 500 soared 9.5% in one of its best days since the Second World War, although it is still well below where it started last week ahead of Trump’s economic edict.