By Alex Financials

Trade Tensions and Tech Troubles Shake Wall Street​

The U.S. stock market began the week on a volatile note, with major indices declining amid escalating trade tensions between the United States and China, disappointing manufacturing data, and underwhelming performances from key technology firms.​

Trade Tensions Resurface: U.S.-China Relations Deteriorate

Renewed friction between the U.S. and China has rattled investors. China accused the U.S. of undermining a recently established trade agreement, citing export restrictions and visa revocations. In retaliation, President Trump announced an increase in steel tariffs from 25% to 50%, aiming to bolster domestic metal production. ​

These developments have led to concerns about a potential trade war, impacting global markets and investor sentiment.​

Manufacturing Data Disappoints: Economic Slowdown Signals

The Institute for Supply Management reported an unexpected decline in U.S. manufacturing activity, reflecting the negative effects of continual changes in trade policy and tariffs. This downturn suggests potential headwinds for economic growth, further unsettling investors.

Tech Sector Under Pressure: AI Investments Scrutinized

The technology sector faced significant challenges:​

• Alphabet Inc. ($GOOGL) shares dropped 8.2% after reporting disappointing cloud revenue growth and announcing a higher-than-expected $75 billion investment in artificial intelligence.

• Advanced Micro Devices ($AMD) fell 8.9% following a forecasted 7% decline in current-quarter data center sales, a key indicator of AI-related revenue.

• Apple Inc. ($AAPL) experienced a 1.2% decrease amid reports that China’s antitrust regulator is preparing a potential investigation into the company.

These developments have raised questions about the sustainability of heavy investments in AI and the competitive landscape of the tech industry.​

Market Indices React: Broad Declines Across the Board

Major U.S. stock indices reflected the day’s uncertainties:​

• The Dow Jones Industrial Average fell by 166 points (0.4%).​

• The S&P 500 declined by 0.3%.​

• The Nasdaq Composite slipped by 0.1%.

These declines underscore the market’s sensitivity to geopolitical developments and economic indicators.​

Investor Sentiment: Seeking Safe Havens

In response to the heightened volatility:​

• Gold prices increased, with futures opening at $3,323.00 per ounce, up 1% from the previous close.

• Bitcoin traded just above $104,000, reflecting its role as an alternative asset during times of uncertainty.

These movements indicate a shift toward assets perceived as safer amid market turbulence.​