Tariff Turbulence: How Risky Are Tech Stocks Right Now?
After two fantastic years, the stock market entered a whole new phase in recent times: one of turmoil. The S&P 500 index and the Dow Jones Industrial Average have slipped so far this year, and the Nasdaq Composite even crashed into a bear market earlier this month -- though indexes have recovered from their lowest points. The reason for the declines and volatility? Investors are worried about President Donald Trump's plan to tax imports and the result this may have on the economy.Technology stocks have been particularly sensitive to tariff news since they're known for manufacturing a great deal of their products abroad. Though Trump has exempted electronics from the tariffs, he said this exemption is temporary as his administration studies specific tariff levels for the industry. These tariffs probably will come in a month or so, U.S. Commerce Secretary Howard Lutnick said during a recent ABC interview earlier this month.So, it seems likely that technology companies will face higher costs in the near future. How risky does this make tech stocks right now?Continue reading
After two fantastic years, the stock market entered a whole new phase in recent times: one of turmoil. The S&P 500 index and the Dow Jones Industrial Average have slipped so far this year, and the Nasdaq Composite even crashed into a bear market earlier this month -- though indexes have recovered from their lowest points. The reason for the declines and volatility? Investors are worried about President Donald Trump's plan to tax imports and the result this may have on the economy.
Technology stocks have been particularly sensitive to tariff news since they're known for manufacturing a great deal of their products abroad. Though Trump has exempted electronics from the tariffs, he said this exemption is temporary as his administration studies specific tariff levels for the industry. These tariffs probably will come in a month or so, U.S. Commerce Secretary Howard Lutnick said during a recent ABC interview earlier this month.
So, it seems likely that technology companies will face higher costs in the near future. How risky does this make tech stocks right now?