Tech Sector Collapse Continues: Big Seven Lose $800B Amid Tariff Uncertainty

The Big Tech sector suffered a massive collapse on Thursday, resulting in an $800 billion loss in valuation over a 24-hour period. The decline was triggered by disappointing quarterly results from Alphabet and Tesla, which revealed significant expenditures on artificial intelligence. This led to investor confidence being shaken.

President Trump's Section 301 tariffs also became effective overnight, imposing levies between 10% and 12.5% on major international trade partners. Oil prices retreated, providing some relief from inflation concerns, but the benchmark 10-year Treasury note yield remained unchanged at 4.70%. Elevated yields can negatively impact growth-oriented equities.

The US dollar index traded flat, while Bitcoin decreased by 0.4% to $65,360. Market participants attempted to stabilize on Friday morning, with American equity futures posting modest gains. The Dow Jones Industrial Average futures climbed approximately 0.5%, while futures tied to the S&P 500 advanced 0.2%. Technology-heavy Nasdaq futures registered minimal movement.