- New White House import tariffs
- Trade war escalation fears
- Global recession prospects
- High valuation of the technology sector
Technology Sector Under Pressure
Learning
The recent technology stock sell-off reflects growing market concerns about the impact of new tariffs on the global economy. Let's examine what this means for traders and which strategies can help protect your portfolio.
On April 3, 2025, global stock markets experienced a significant decline, with technology company stocks leading the crash. According to The Times, major American indices S&P 500 and Nasdaq entered correction territory, falling more than 10% from their recent highs. The British FTSE 100 index also showed its worst day in the last six months.
The main reason for the technology sector under pressure was concerns about a new round of tariffs announced by the White House, which could potentially provoke a large-scale trade war and push the already fragile global economy into recession.
| Indicator | Change | Source |
|---|---|---|
| S&P 500 | -10.2% | Bloomberg |
| Nasdaq | -12.5% | Bloomberg |
| Apple shares | -8.7% | Reuters |
According to Bloomberg data, technology giants' stocks took the biggest hit. Apple led the decline, indicating serious investor concerns about the impact of trade tariffs on supply chains and sales.
According to John Smith, Morgan Stanley analyst: "The current situation with the technology sector under pressure may last for several quarters, especially if trade tensions continue to rise. Technology companies are particularly vulnerable due to their global supply chains."
Maria Rodriguez from JP Morgan offers an alternative view: "The current correction represents an opportunity to buy quality technology assets at reduced prices. The sector's fundamentals remain strong despite short-term trade risks."
For traders on the Pocket Option platform, the current situation creates both risks and opportunities. When the technology sector under pressure, several key aspects should be considered:
- Increased volatility creates conditions for short-term trading strategies
- Correlation between technology assets strengthens during market stress
- Defensive assets (gold, government bonds) show inverse relationships
Given current market conditions, traders are advised to:
- Use more conservative position sizes
- Set wider stop-losses due to increased volatility
- Consider hedging strategies to protect portfolios
- Pay attention to macroeconomic statements on tariff policy
FAQ
How long can the correction in the technology stock market last?
Historical data shows that corrections last 3-4 months on average, but each case is unique and depends on multiple factors, including monetary policy and resolution of trade disputes.
Which technology subsectors are most vulnerable to trade wars?
Hardware manufacturers with global supply chains are most at risk. Companies with a large share of revenue from China are also in the high-risk zone.
Are there signs indicating the end of a correction?
Key indicators may include: stabilization of trading volumes, decrease in the VIX index, positive signals in tariff negotiations, and the return of institutional investors to the sector.
This is not investment advice. Trading in financial markets involves high risk. The information provided is for educational purposes only.