BigTech Stocks Are Still Losing Ground. Nasdaq Down 2%

💡Wall Street resumes declines after WSJ reports on tariffs

US indices are resuming declines, erasing much of the rebound that took place over the past two sessions. Weakness is particularly visible in the technology sector, where BigTech stocks are still losing ground. The reason for such a strong sell-off is WSJ reports of upcoming tariff changes. Here are the key takeaways:

• VAT taxes will be “taken into account” when setting tariff rates
• The United States considered (and then abandoned) a three-tiered tariff system that would not include any “tariff-free” regions
• Officials fear USTR will not be able to handle all the red tape related to tariffs
• Officials fear legal challenges.
• Canadian officials told that tariffs are “virtually certain”
• In addition to the mutual tariffs, the new 25% tariffs will apply to cars, pharmaceuticals and semiconductors, among other things

Another reason for the declines is stronger than expected data from the US economy, where industrial production and building permits were much higher than expected. As a result, the market may be worried that tomorrow’s message from Fed Chairman Powell will be a bit more hawkish and reserved – especially given the so far illusory hopes of easing trade tensions under the new administration.

As a result, the Nasdaq100 (US100) contract is retreating by almost 2%, and shares of companies such as Alphabet (GOOGL.US), Meta Platforms (META.US) and Nvidia (NVDA.US) are losing between 3.5% and 4%. Among individual companies, it is worth mentioning Tesla (TSLA.US), whose shares are already losing over 6% due to concerns about a decline in its share in the Asian market, as well as Toronto’s decision not to provide financial subsidies for Tesla vehicles purchased as taxis or rideshares due to trade tensions with the United States.

Companies from the oil and gas sector are doing best today against the background of the technology sector. Source: xStation

The chart indicates that today’s declines are taking place on relatively low volume. On the other hand, the contract has fallen below the important exponential averages EMA50 and EMA200 on the hourly time frame. Source: xStation5 

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