Tech stocks led declines in U.S. markets on Tuesday amid growing concerns over tariff policies and economic uncertainty. The Nasdaq 100 Index fell by -1.24%, extending losses from previous sessions, while the S&P 500 and Dow Jones showed mixed performance. A sharp drop in U.S. consumer confidence and reports of potential new restrictions on chip sales to China weighed heavily on investor sentiment.
The Conference Board’s U.S. consumer confidence index fell by -7.0 points to 98.3, marking an 8-month low and the largest decline in 2.5 years. Cryptocurrency markets also experienced significant losses, with Bitcoin and Ether dropping more than -6% and -5%, respectively, amid a broader risk-off environment.
Bloomberg reported that the Trump administration is planning stricter controls on chip exports to China, including potential sanctions on Chinese companies to curb their domestic chip industry. President Trump reaffirmed plans to impose tariffs on imports from Mexico and Canada, scheduled for March 4, and reiterated intentions for “reciprocal tariffs” starting April 1.
In housing data, U.S. home prices showed resilience, with the S&P Corelogic home price index rising +0.52% month-over-month and +4.48% year-over-year in December. Investors are now focused on Nvidia’s earnings report and key economic data, including the Q4 GDP and January PCE price index, which could influence the Federal Reserve’s monetary policy decisions.
Global markets also trended lower, with European and Asian indices posting declines. Interest rates saw movement as the 10-year Treasury yield fell by -10.8 basis points to 4.293%, reflecting increased demand for safe-haven assets.
Notable stock movers included Tesla, which dropped over -8% amid reports of a -45% year-over-year sales decline in Europe, and Nvidia, which fell more than -3% ahead of its earnings release. Crypto-related stocks like MicroStrategy and MARA Holdings also saw steep declines. Restaurant stocks gained attention after the National Restaurant Association urged President Trump to exempt food and beverages from tariffs.
— news from Nasdaq