What Happened?

Shares of genomics company Illumina (NASDAQ:ILMN) fell 6.3% in the afternoon session after China put the company on its "unreliable entity" list, opening the door to possible sanctions. The move came after the Trump administration slapped a 10% tariff on Chinese goods. Financial filings in 2024 revealed that Illumina makes about 7% of its sales from China, and it's unclear whether China's action is a short-term reaction or one with longer consequences.

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What The Market Is Telling Us

Illumina’s shares are somewhat volatile and have had 11 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

Illumina is down 6.1% since the beginning of the year, and at $122.99 per share, it is trading 20.7% below its 52-week high of $155.15 from November 2024. Investors who bought $1,000 worth of Illumina’s shares 5 years ago would now be looking at an investment worth $415.51.

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