U.S. tech stocks slid in premarket trading on April 10, 2025, following a record-breaking rally on Wednesday that was triggered by President Trump’s unexpected tariff policy reversal.
Apple, Microsoft, Nvidia, and Alphabet, four of the most influential stocks in the S&P 500 and Nasdaq 100, led the retreat as investors reassessed trade risks and awaited fresh inflation data.
The pullback comes less than 24 hours after all four companies helped power the Nasdaq Composite to its biggest single-day percentage gain since 2001. But with Trump simultaneously hiking tariffs on Chinese imports to 125% while pausing others for 90 days, markets are once again contending with rising geopolitical uncertainty.
As of 4:55 a.m. ET:
- Apple (AAPL) was down 2.3% in premarket trade
- Microsoft (MSFT) fell 1.9%
- Nvidia (NVDA) declined 3.8%
- Alphabet (GOOGL) dropped 1.7%
These losses reflect broader market weakness. Nasdaq 100 futures were down 2.61%, S&P 500 futures dropped 2.14%, and Dow futures fell 1.61%.
Wednesday’s rally was fueled by Trump’s 90-day pause on reciprocal tariffs affecting dozens of countries, which investors interpreted as a short-term relief move. However, the simultaneous escalation of tariffs on China, rising from 104% to 125%, has shifted market focus back toward the U.S.-China trade conflict.
According to analysts at Rabobank, “The trade war is now turning into a direct confrontation between the U.S. and China… we could again be seeing escalation and de-escalation at the same time, pulling markets in different directions.”
Nvidia, which led tech gains on Wednesday, was hit hardest in Thursday’s early trading. The chipmaker is particularly sensitive to trade disruptions due to its global supply chains and exposure to AI and semiconductor exports. After soaring over 18% in the last session, the correction is being seen as both profit-taking and a recalibration of trade-related risk.
Apple and Alphabet, both with sizable China-based operations and customer bases, are under scrutiny due to the direct impact tariff hikes could have on hardware supply chains, advertising spend, and regulatory exposure. Microsoft’s drop appears more modest, in line with broad-based tech selling, although investors remain bullish on the company’s enterprise cloud business and AI strategy.
Despite today’s slide, all four companies remain substantially higher week-to-date. The current weakness reflects market recalibration after a volatile 48-hour policy shift rather than a reversal in sentiment around tech fundamentals.
Investors are also awaiting today’s March Consumer Price Index report and jobless claims data, both of which will influence the Federal Reserve’s next move. Economists expect headline inflation to ease to 2.6% year-over-year, down from 2.8% in February. However, any surprise uptick, especially in core inflation, could reignite rate hike fears and further pressure growth stocks.
Bond markets stabilized after Wednesday’s sharp moves, with the 10-year Treasury yield dropping to 4.288%. Meanwhile, the CBOE Volatility Index (VIX) edged lower but remained elevated at 38.79, reflecting ongoing uncertainty.
Markets are also eyeing tomorrow’s earnings results from JPMorgan Chase and other major banks, which are expected to set the tone for the Q1 earnings season. Analysts believe any signs of weakening consumer demand or margin pressure could weigh further on high-valuation tech stocks in the coming weeks.
As of April 10, 2025, the tech sector is navigating a sharp reset following yesterday’s historic rally. Apple, Microsoft, Nvidia, and Alphabet are all giving back gains as traders reassess the long-term impact of the U.S.-China trade landscape and prepare for key economic data.
