Tech Stocks Experience Setbacks Amid Trade Tensions

Technology stocks have plunged over 7% since President Donald Trump took office. New tariffs have ignited a trade conflict, triggering a shift towards cautious investment approaches on Wall Street. Companies like Nvidia, which depend on overseas parts and manufacturing, have suffered notably, with the chipmaker witnessing a drop of more than 17% during Trump’s administration.

The S&P 500 technology sector has seen a 7.6% decline since Trump’s inauguration. Economists caution that the ongoing tariff clash could result in heightened inflation and a ripple effect across the globe, leading investors to hedge against potential risks. The semiconductor industry has particularly struggled, as reflected by the VanEck Semiconductor ETF, which has slid nearly 14% since Trump’s leadership began. Major technology companies, including Apple and Nvidia, have faced significant stock depreciation following the imposition of these tariffs and new trade regulations.