President Donald Trump’s tariff threat tied to his Greenland acquisition ambitions, along with the EU’s mooted $108 billion tariff package and “trade bazooka,” sank tech shares in U.S. pre-market trading.
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As trading resumed on Tuesday following Monday’s federal holidays, Big Tech stocks fell, mimicking the fall in U.S. stock futures and a similar drop in Europe seen earlier on Monday. As of 4:42 a.m. EST:
- Nvidia (NVDA) — dropped 3.17% to $180.27
- Alphabet (GOOGL) — tumbled 4% to $316.86
- Amazon (AMZN) — shrank 3.20% to $218.48
- Microsoft (MSFT) — edged lower 1.71% to $451.98
- Meta (META) — fell about 3% to $601.71
Over the weekend, President Trump warned of an additional 10% tariff on eight European countries, starting February 1, with plans to raise them to 25% by June 1 until a deal is reached on his proposal to make Greenland part of the U.S. In addition to the EU countries of Denmark, Sweden, France, Germany and the Netherland, the threat covers non-members, the UK and Norway.
What EU and U.S. Stocks Could Be in Crosshairs?
Trump’s new tariffs could leave several European companies, including Danish drugmaker Novo Nordisk (NVO), Switzerland-based Roche (RHHBY), and France’s Sanofi (SNY), exposed to additional export burden. In response, the EU is considering letting its suspended retaliatory tariff package on $108 billion American goods come into effect in February.
Such a move could hit several U.S. companies such as Tyson Foods (TSN), Harley-Davidson (HOG) and Caterpillar (CAT).
In addition, the EU is weighing invoking its anti-coercion instrument, colloquially known as the “trade bazooka.” However, EU leaders will meet this Thursday in Brussels for an emergency summit to discuss their options.
What Are the Best Tech Stocks to Buy?
The TipRanks Stock Comparison tool highlights which tech stocks analysts currently view as attractive buys, based on the latest Wall Street ratings. Please see the image below.
