Tim Cook
Sally Shin | CNBC
Technology stocks declined Tuesday, erasing earlier gains after a broad market relief rally faded.
The tech-heavy Nasdaq dropped more than 2%, wiping out an earlier gain of 4.6% at its highs. Apple dropped about 5%. Meta Platforms, Alphabet, Amazon were also lower Tesla. Microsoft and Nvidia hovered near the flatline.
Markets rallied earlier in the session on optimism that the U.S. could negotiate deals to lower tariffs with some of world leaders. Those hopes faded on worries that negotiations won’t reach an agreement before reciprocal tariffs go into effect at midnight.
Trump’s wide-sweeping tariff plans have sparked violent turbulence over the past three trading sessions. Trading volume on Monday hit its highest in nearly two decades in a wild trading session after speculation that the White House could potentially delay tariffs The Nasdaq on Friday posted its worst week in five years and the Magnificent Seven group lost $1.8 trillion in market value over two trading sessions.
Semiconductor stocks also succumbed to the broader market pressure. The VanEck Semiconductor ETF fell 2%, giving up an earlier gain. Broadcom gained 1% after announcing a $10 billion share buyback plan through the end of the year. Advanced Micro Devices slumped 5%, while Apple supplier Qorvo dropped 8%. Intel and Micron Technology fell about 7% and 5%, respectively.
Chipmakers were excluded from the recent tariffs but have come under pressure on worries that higher duties could diminish demand for products they are used in and slow the economy. The sector is also expected to see tariffs further down the road.
