FX.co ★ US Stocks Tumble as Tariff Fears Hit Tech Sector

On Wednesday, the US stock market experienced a significant downturn, primarily driven by a sharp decline in tech stocks amid increasing concerns about forthcoming US tariffs. The S&P 500 decreased by 1.1%, the Nasdaq 100 fell by 2%, ending a three-day uptrend, and the Dow Jones dropped by 134 points. Tech giants such as Nvidia and Tesla saw their shares fall by more than 5.5%, while major companies like Meta, Amazon, and Alphabet each experienced declines of over 2%. The auto sector was also hit hard following reports that President Trump would introduce new tariffs on vehicle imports by 4 p.m. ET, resulting in a 3% decline for General Motors. The uncertainty regarding the extent and implications of these tariffs has contributed to heightened market volatility, with fears of retaliation and broader economic repercussions. Conversely, energy stocks benefited from rising oil prices after the US expressed intentions to levy tariffs on countries purchasing Venezuelan crude. Investors are now focusing on the PCE inflation report due on Friday, which is a crucial element in the Federal Reserve's upcoming policy decision.