Tech Stocks Slip As Market Reverses Post-Tariff Rally: What's Going On?

Shares of major technology companies, including Apple Inc. AAPL, Advanced Micro Devices Inc.AMD and Alphabet Inc. GOOGL are trading lower Thursday following a broader market pullback after Wednesday's sharp rally.

What To Know: On Wednesday, equities surged after President Donald Trump announced a 90-day pause on tariffs for countries that have not retaliated against U.S. trade actions. At the same time, he raised tariffs on Chinese imports to 125%, calling out Beijing for what he described as long-standing trade imbalances.

The move sent markets soaring, with the Nasdaq 100 gaining 10%, the S&P 500 rising 7.6% and the Dow Jones Industrial Average jumping 6.8%. Technology stocks, especially the so-called "Magnificent Seven," led the charge as investor sentiment turned decisively bullish.

However, Thursday's market action reflects a reversal of that euphoria. Investors appear to be reassessing the sustainability of the rally and weighing the longer-term implications of Trump's aggressive tariff stance toward China. Concerns are emerging that the spike in tariffs could reignite global trade tensions, potentially harming multinational tech companies that rely on international supply chains and markets.

Treasury Secretary Scott Bessent defended the tariff hike as a necessary step to correct trade imbalances, describing China as a “bad actor” on the global stage. While the market initially interpreted the pause in some tariffs as a sign of stability, the aggressive posture toward China is now prompting questions about the risks ahead, especially for companies with significant exposure to Chinese manufacturing or sales.

Price Action: Apple is down 4.30% to $190.37, AMD has dropped 9.29% to $87.85 and Alphabet is off 3.52% at $155.29 at the time of writing, according to Benzinga Pro.

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