Nike (NKE) shares plunged 6.52% in pre-market trading on Monday, as the sportswear giant faces a double whammy of new tariffs and a broader market selloff. The stock's decline follows a significant 7.95% drop in the previous trading session, reflecting growing investor concerns about the company's future profitability and global operations.

The primary driver behind Nike's stock plummet is President Trump's recent announcement of a blanket 10% tariff on all goods entering the U.S., with even higher "reciprocal" tariffs set to take effect on April 9. As a global brand with extensive international supply chains, Nike is particularly vulnerable to these trade disruptions. TD Cowen analysts have identified Nike as one of the companies at high risk of a margin squeeze due to the tariffs, leading them to cut their price target for the stock from $65 to $58.

Adding to the pressure on Nike's stock is a broader market decline, with the Dow Jones Industrial Average falling nearly 1,600 points. The negative sentiment is further fueled by warnings from prominent investors, such as billionaire Bill Ackman, who cautioned about an "economic nuclear winter" if the tariff situation is not resolved quickly. As trade tensions escalate, investors continue to reassess their positions in companies with significant exposure to international markets, contributing to the ongoing pressure on Nike's stock price.