Market Overview
As of the time of writing, the Dow Jones Industrial Average has fallen approximately 4.28%, the S&P 500 has declined about 5%, and the Nasdaq Composite has dropped around 5.83%, led by declines in technology stocks. The rapid selling pressure observed after the market opened reflects investors’ strong reaction to the current economic environment, particularly under the influence of trade policies.
Despite President Trump announcing last night a 90-day suspension of reciprocal tariffs (excluding China), the underlying 10% tariffs and the high rates on China remain unchanged. The uncertainty surrounding these policies continues to affect market sentiment. Analysts generally believe that while the suspension measures have alleviated some pressure in the short term, the long-term implications remain unclear, prompting investors to sell off stocks to mitigate risk.
On the other hand, although the Consumer Price Index (CPI) data released by the U.S. Department of Labor came in below expectations, this data was calculated prior to the implementation of reciprocal tariffs, thus offering limited reference for investors.
Additionally, technology stocks have shown particularly weak performance today, which may be related to supply chain adjustments following the implementation of reciprocal tariffs. For instance, tech giant Apple recently chartered cargo planes from India to ship 600 tons of iPhones (approximately 1.5 million units) to the United States to avoid tariffs, a move that could lead to short-term cost increases and production efficiency issues (as of the time of writing, Apple’s stock price has declined over 6%).
The market is concerned that similar supply chain shifts may affect the profitability of tech giants, thereby dragging down the Nasdaq index. Investors are skeptical about the technology sector’s ability to quickly adapt to changes in trade policy, leading to related stocks being among the biggest decliners after the market opened.
Meanwhile, Bitcoin has also retreated alongside the decline in U.S. stocks, erasing much of the gains from last night’s “tariff suspension rally.”
