FX.co ★ Tech Selloff and Tariff Worries Drag Stocks Lower

In the afternoon trading session, US stocks experienced a downturn, poised to end a three-day rally amid renewed tariff concerns and waning momentum in the technology sector, which unsettled investors. The S&P 500 declined by 1.1%, the Nasdaq 100 fell by 1.7%, and the Dow Jones reversed its early gains to fall 100 points. Major stocks saw significant drops, with Nvidia plunging 6%, and declines in Tesla (-5.7%), Amazon (-2.3%), and Alphabet (-2.4%). Selling pressures escalated following the White House's announcement that President Trump would introduce new auto tariffs at 4 p.m., leading to lower share prices for General Motors, Ford, and Stellantis. This announcement precedes a broader array of trade measures expected to be unveiled next week, heightening concerns over extended economic unpredictability. Investor sentiment remained tenuous, particularly after Federal Reserve official Alberto Musalem cautioned that inflation, driven by tariffs, might hinder progress toward reaching the 2% target. Adding to the market pressures, the Congressional Budget Office warned that the Treasury could potentially face a payment default as early as August.