Dan Ives Calls Import Tariffs "Armageddon." Should You Really Buy Tech Stocks Now?
Investors piled into technology stocks over the past couple of years on optimism that artificial intelligence (AI) could become the next great revolution. Unsurprisingly, tech stocks led gains in the Nasdaq Composite (NASDAQINDEX: ^IXIC), but they also drove the Dow Jones Industrial Average (DJINDICES: ^DJI) and the S&P 500 (SNPINDEX: ^GSPC) higher. Nvidia (NASDAQ: NVDA) and Palantir Technologies posted the top performances in those two indexes, respectively, last year.Today, though, the situation isn't looking as spectacular for tech stocks, and Wedbush analyst Dan Ives has been one to highlight that. President Trump last week announced his full plan for import taxes, and Ives called the situation an "economic Armageddon" that could be painful for U.S. tech players.Trump launched a general tax of 10% on all imports to the U.S. -- except those covered by a North American trade agreement -- and set out various additional tax levels that apply to specific countries. The problem is that tech companies generally produce their products outside the U.S., so the import taxes will weigh on their costs.Continue reading
Investors piled into technology stocks over the past couple of years on optimism that artificial intelligence (AI) could become the next great revolution. Unsurprisingly, tech stocks led gains in the Nasdaq Composite (NASDAQINDEX: ^IXIC), but they also drove the Dow Jones Industrial Average (DJINDICES: ^DJI) and the S&P 500 (SNPINDEX: ^GSPC) higher. Nvidia (NASDAQ: NVDA) and Palantir Technologies posted the top performances in those two indexes, respectively, last year.
Today, though, the situation isn't looking as spectacular for tech stocks, and Wedbush analyst Dan Ives has been one to highlight that. President Trump last week announced his full plan for import taxes, and Ives called the situation an "economic Armageddon" that could be painful for U.S. tech players.
Trump launched a general tax of 10% on all imports to the U.S. -- except those covered by a North American trade agreement -- and set out various additional tax levels that apply to specific countries. The problem is that tech companies generally produce their products outside the U.S., so the import taxes will weigh on their costs.
