Tech Market Reverses Course After Tariff-Fueled Rally, Apple and AMD Stocks Slump

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

The tech-heavy Nasdaq Composite Index fell 1.1% on Friday, snapping a three-day winning streak that was fueled by optimism over the US-China trade deal. The broader S&P 500 Index also dropped 0.7%, with the Dow Jones Industrial Average shedding 0.5% as the market reversed its post-tariff rally.

The tech sector, which has been a key driver of the market's gains in recent years, was particularly hard hit. The S&P 500 Information Technology Index tumbled 2.1%, with many of the sector's biggest names falling by 3% or more.

Some of the biggest losers included:

• Amazon.com, Inc. (AMZN) -3.4%
• Microsoft Corporation (MSFT) -2.8%
• Alphabet Inc. (GOOGL) -2.5%
• Facebook, Inc. (FB) -2.4%
• Apple Inc. (AAPL) -2.2%

The market's reversal was attributed to a combination of factors, including concerns over the potential impact of the US-China trade deal on global economic growth and the ongoing uncertainty surrounding the global economy.

"The market is just taking a pause after the big rally," said Michael Antonelli, market strategist at Robert W. Baird & Co. "We've had a huge move up, and now investors are just taking a step back to re-evaluate the situation."

Despite the market's pullback, many analysts remain optimistic about the tech sector's prospects, citing its strong fundamentals and the potential for continued growth.

"The tech sector is still one of the most attractive areas of the market," said Mark Luschini, chief investment strategist at Janney Montgomery Scott LLC. "These companies are still generating strong earnings growth, and their valuations are still reasonable compared to the broader market."

For now, investors will be watching the market's next move closely, as the sector looks to regain its momentum and continue its upward trend.