Meta Shares Drop During Market Sell-Off, Tariff Concerns: What's Going On?

Meta Platforms Inc META shares traded lower Thursday as overall market weakness dragged down social media and tech stocks.

What To Know: The decline came as Wall Street erased Wednesday's gains, with market sentiment weighed down by tariff threats and economic data.

U.S. President Donald Trump's announcement of a potential 200% tariff on European wine and spirits imports, in response to the EU's 50% tariff on U.S. whiskey, added to global trade tensions. The uncertainty around tariffs raised fears of economic slowdowns and potential retaliatory measures, prompting investors to shift away from high-growth tech stocks.

The U.S. Producer Price Index for February came in flat month-over-month, well below the expected 0.3% increase and the upwardly revised 0.6% gain in January. While weaker inflation data might typically support equities, the lack of growth raised concerns over consumer and business spending, further pressuring stocks.

The overall market downturn was reflected in the major indices, with the Dow Jones dropping 1.1%, the S&P 500 falling 1.2% and the tech-heavy Nasdaq 100 sliding 1.7%. The sell-off was widespread, with every sector except materials trading in the red. Gold prices surged to a record $2,980 per ounce as investors sought safe-haven assets.

Why It Matters: Meta's stock decline aligns with broader tech sector struggles, as high-growth stocks are particularly sensitive to macroeconomic uncertainties.

The Communication Services Select Sector SPDR Fund XLC, which includes Meta and other social media stocks, fell 2.06%, indicating that the pullback was industry-wide. The Technology Select Sector SPDR Fund XLK also dropped by 1.90%, showing broad weakness in tech companies.

The company's drop is also part of a broader trend of tech stocks facing volatility as investors rebalance portfolios away from riskier assets. As tariff concerns and macroeconomic pressures persist, Meta and other large-cap tech stocks could continue to face headwinds in the coming weeks.

META Price Action: Meta shares closed Thursday down 4.67% at $590.64 at the time of writing, according to Benzinga Pro.