Technology stocks plummeted Thursday and the Nasdaq Composite headed for its worst day since 2020 on the heels of its record-setting day ever jump Wednesday.
The tech-heavy index dropped more than 6% and was on pace for its eight-worst day over the past two decades. Six of the last seven biggest drops came during the 2008 financial crisis and the early days of the Covid pandemic.
Stocks posted a monster rally Wednesday after President Donald Trump announced a 90-day pause on some tariffs and dropped the tariff on most countries to 10% to allow negotiations. However, the White House confirmed Thursday to CNBC that the cumulative tariff rate on China would total 145%.
Markets reversed course Thursday. Apple declined 6%, giving back some of its 15% Wednesday gain that pushed the iPhone maker to its best day since January 1998. Tesla dropped 10%, while Meta Platforms, Amazon and Nvidia declined at least 7% each. Microsoft and Alphabet and were last down at least 4% each.
Semiconductor stocks reliant on production and manufacturing outside the U.S. also slumped, with the VanEck Semiconductor ETF shedding 9% after its best session ever. While the sector has been excluded from the recent tariffs, chipmakers have sold off on fears that tariffs will eat away at demand and hurt the economy. Targeted tariffs also remain on the horizon.
On Semiconductor, Marvell Technology and Apple suppliers Qorvo and Skyworks Solutions plunged more than 12% each. Advanced Micro Devices, Broadcom and Intel fell at least 8% each. Micron Technology dropped more than 11%.
