US tech stocks drop as trade tensions and AI worries shake markets
US tech stocks took a hit on Tuesday after President Trump amped up trade threats against Europe.
The Nasdaq fell 1.7%, with investors spooked by both the trade drama and doubts about whether AI companies are really worth their sky-high prices.
Why should you care?
Big names like NVIDIA, Tesla, Amazon, Meta, Alphabet (GOOGL), and Apple all saw their stock prices slide—with NVIDIA down more than 3% and others slipping roughly 2%-3%.
Even buzzy NVIDIA-backed emerging AI cloud firms like Nebius (down more than 6%) and CoreWeave (down over 4%) weren't spared.
If you're following tech or thinking about investing, this is a reminder that hype alone doesn't always keep stocks up.
What's behind the drop?
It's a mix of global politics and money worries. Concerns over company debt (like Oracle's) and whether huge spending on AI will actually pay off have investors nervous.
Some experts are cautious—Hedgeye's Sam Rahman flagged risks in massive capital spending—while others like Wedbush's Dan Ives see it as a chance to buy in early on the next wave of AI growth.