U.S. Markets Tumble as Tech Stocks Plunge Amid Tariff Concerns

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Samiat

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Nov 12, 2024
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U.S. Markets Tumble as Tech Stocks Plunge Amid Tariff Concerns​

The U.S. stock market suffered a sharp decline on Monday, March 3, 2025, as investor concerns over new tariffs set to take effect Tuesday triggered a broad selloff, particularly in the technology sector. The S&P 500 fell 1.8%, marking its biggest daily drop this year, while the Dow Jones Industrial Average sank 1.5% and the Nasdaq plummeted 2.6%, dragged down by losses in artificial intelligence (AI) and semiconductor stocks.

Market Drivers: Tariffs and Economic Data​

  • President Trump confirmed tariffs on imports from Mexico and Canada (25%) and an additional 10% levy on Chinese goods would begin Tuesday.
  • Manufacturing data painted a mixed picture, with the Institute for Supply Management (ISM) reporting a sharp drop in new orders, the steepest decline since March 2022. Price pressures also rose, raising concerns about inflation.
  • Oil prices declined, with WTI crude settling at $68.12 per barrel, as OPEC+ announced it would begin gradually reversing production cuts.

Biggest Losers: Tech and AI Stocks Take a Hit​

  1. Super Micro Computer (SMCI) ↓ 13% – Led losses on the S&P 500 after analysts warned of increasing competition and market share decline in the AI server industry.
  2. Nvidia (NVDA) ↓ 8.7% – Extended last week’s selloff as concerns over AI spending and potential U.S. export restrictions on chips intensified. Singapore authorities are investigating whether Nvidia chips were illegally rerouted through Malaysia.
  3. APA Corp (APA) ↓ 8.7% – Continued to slide after missing Q4 earnings expectations, despite higher production from its Permian Basin operations.
  4. Dell Technologies (DELL) ↓ 7% – Fell amid concerns over chip supply chain disruptions tied to the Singapore fraud investigation.
  5. Broadcom (AVGO) ↓ 5.7% – Declined ahead of its earnings release, as investors worried about AI chip demand.

Top Gainers: Defensive and Domestic Plays Shine​

  1. Erie Indemnity (ERIE) ↑ 5.1% – Insurance stock surged after reporting strong Q4 earnings, driven by higher policy renewal fees.
  2. Weyerhaeuser (WY) ↑ 4.3% – Benefited from Trump’s executive order aimed at boosting domestic timber production.
  3. Hershey (HSY) ↑ 3.4% – Rebounded after last week’s decline, as concerns over food assistance program cuts eased.

Looking Ahead​

Investors will now watch for:
  • The official implementation of tariffs on Tuesday and potential reactions from trading partners.
  • Upcoming Federal Reserve commentary, as price pressures and manufacturing slowdowns could shape interest rate expectations.
  • Broadcom’s earnings report, which could provide more insight into the AI chip market.
With economic and trade uncertainties mounting, volatility is expected to remain high in the coming sessions.

4o
 
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