LGT Navigator

Tech stocks tumble amid trade policy fears

US technology stocks experienced a sharp decline on Monday due to concerns over President Donald Trump's unpredictable trade policies and potential economic downturns. Major tech companies like Tesla, Amazon, and Microsoft saw large losses. European stocks were also in the red on Monday, and Asian markets mirrored this downturn on Tuesday, with stocks trading lower across the region. Gold held steady around USD 2900 per ounce, US Treasury yields dropped to start the weak and oil prices were down on recession concerns.

Data
Autore
Shane Strowmatt, LGT
Tempo di lettura
5 minuto

Falling market
© Shutterstock

US technology stocks experienced a significant sell-off on Monday, driven by concerns over Trump’s erratic trade policies and potential economic downturns. The Nasdaq-100 dropped by 3.8% to 19,430.95 points, marking its largest daily loss since 2022. Major tech firms such as Tesla, Amazon, Microsoft, Meta, Alphabet, Apple, and Nvidia saw substantial declines, with Tesla shares falling 15.4%. The broader Nasdaq Composite fell by 4%, while the S&P 500 and Dow Jones Industrial decreased by 2.7% and 2.1%, respectively. The CBOE Volatility Index - a gauge of market fear - surged 19.2%, reaching its highest level since 2022.

Asian stocks follow Wall Street down

Stocks in the Asia-Pacific region were trading lower on Tuesday, following a weak trading day on Wall Street. Japan’s Nikkei 225 was trading 0.3% lower, paring steeper losses from the start of the trading day. Japan’s fourth-quarter gross domestic product (GDP) was released on Tuesday at 2.2% annualized growth, well below market expectations. The yen moved towards a five-month high as the dollar came under pressure due to the unpredictable US tariff policies. Korea’s Kospi fell 1.1%, and Australia’s S&P/ASX 200 was 0.9% lower. Hong Kong’s Hang Seng Index slipped 0.8% and mainland China’s CSI 300 dropped 0.4%.

German industrial production rises, exports decline

Industrial production in Germany increased by 2% in January compared to December, according to data released on Monday by the Federal Statistical Office. This growth follows a 1.5% decline in December 2024. The automotive sector led the increase with a 6.4% rise, while production in energy-intensive industries grew by 3.4%. However, German exports decreased by 2.5% in January compared to December, totalling EUR 129.2 billion, while imports increased by 1.2% to EUR 113.1 billion. Europe’s largest economy has struggled to produce economic growth in recent years and the recent volatile tariff policies under Trump add a new obstacle for Germany’s export-heavy industries. Germany’s DAX led European stock losses on Monday, falling 1.7%, while the Euro Stoxx 50 dropped 1.6%.

Euro-area economic expectations surge

The sentix Economic Index for March revealed a significant rise in euro-area expectations, climbing by 17 points to +18, the highest since July 2021. This surge is attributed to new debt-financed investments in armaments and infrastructure, particularly in Germany, where expectations soared by 26.3 points. Conversely, the US experienced a historic decline, with its expectations index plummeting by 25.8 points, reminiscent of the 2008 financial crisis. Japan also saw declines in both current situation and expectations values, reflecting rising inflation and potential monetary tightening.

Corporate and economic calendar

Corporate news in focus: Quarterly figures from Henkel, Partners Group, and Volkswagen.

Economic data in focus: US JOLTS jobs report (16:00).

LGT helps you make informed investment decisions

Global economic and market trends at a glance

You can also follow us on Facebook or LinkedIn – or visit Insights and discover interesting background articles. If you have questions, a consultant from the bank will be happy to help you.

Imprint
Publisher: LGT Bank (Switzerland) Ltd., Glärnischstrasse 36, CH-8027 Zurich
Editor: Alessandro Fezzi
Source: LGT Bank (Switzerland) Ltd.

Contattateci