Trump’s Tariffs Are ‘Impacting Main Street,’ Not Just Wall Street: BlackRock CEO Larry Fink Says – SPDR Select Sector Fund – Consumer Discretionary (ARCA:XLY)

The S&P 500 fell 0.7% and the Dow Jones dropped 342 points in Monday’s volatile session marked by record intraday swings. Chamath Palihapitiya said the impact of Trump’s tariffs is confined to Wall Street’s wealthy investors while sparing Main Street Americans, but BlackRock Inc. BLK CEO Larry Fink disagrees.

What To Know: Palihapitiya shared a social media post on Sunday saying that “the top 10% of American households own 88% of the total equities owned by American households” while “the next 40% of households own 12%.” He then claimed “the bottom 50% of Americans have zero interest in the stock market.”

The top 10% of American households own 88% of the total equities owned by American households.

The next 40% of households own 12%.

This means the bottom 50% of Americans have ZERO interest in the stock market, are likely in debt and, simply, just want to do better.

This… https://t.co/wSxXGxAquc

— Chamath Palihapitiya (@chamath) April 5, 2025

Read Next: Oil Crashes To $60 Per Barrel As Global Recession Fears Grow

BlackRock CEO Larry Fink pushed back on the idea that Wall Street and Main Street are disconnected when he spoke to the Economic Club of New York on Monday.

“The reality is 62% of Americans now invest in equities — the market impact is impacting Main Street,” Fink said, per Reuters.

The tariffs and the resulting economic turmoil are “going to freeze more and more consumption, I think we’re going to start seeing that really quickly,” he added.

Why It Matters: The market is reacting to more than just portfolio risk, it is pricing in the potential for real economic damage. Tariffs hit the cost of goods directly, disrupt supply chains and weaken demand.

Journalist Matt Zeitlin explained on Monday that tariffs are more than just a stock market issue, they are a pricing shock that hits sectors of the economy tied to credit, employment and everyday goods.

One interesting thing is that we haven’t really seen the *real* effects of the tariffs yet, just market effects, ranging from “everything in Walmart is more expensive” to “used car market dries up” to “obscure link in the industrial supply chain collapses”

— Matthew Zeitlin (@MattZeitlin) April 7, 2025

Economically sensitive stocks like industrials and retailers are under pressure and being repriced for real-world consequences.

The SPDR Select Consumer Discretionary Sector Fund XLY, tracking industries like retail, automotive and leisure, has dropped more than 12% over the past month. The SPDR Select Industrial Sector Fund XLI, tracking industrials like aerospace, defense, construction, engineering and electrical equipment firms, has fallen more than 10% in the past week alone.

Read Next:

Image: Shutterstock