"Tech stocks plunged yesterday after President Trump announced in a " proclamation" that he was imposing a new 25% tariff on imports of computer chips from foreign countries. Every single one of the Magnificent Seven tech stocks was down by the closing bell yesterday. Meta suffered the worst, down 2.47%. Oracle (not in the Mag 7 but closely related) was down 4.29%, perhaps because it is the hyperscaler most dependent on imported chips for its AI data center business. The S&P 500 closed down 0.53%."
"However, S&P futures this morning were up 0.36% prior to the opening bell. Traders may be buoyed by the fact that there is a rotation away from the Mag 7 going on among investors in S&P 500 stocks. The index was dragged down yesterday largely because the Mag 7 performed so poorly. But the notional "equal weight" S&P 500 actually rose 0.41%. It's up 3.62% this year while the normal index is up only 1.18%."
""There was still a lot of resilience among equities more broadly, as most of the S&P's constituents still advanced ... We saw more of the rotation pattern at play since the start of the year, with the small-cap Russell 2000 (+0.70%) hitting a new record as it outperformed the S&P 500 for the ninth session in a row. Indeed, the Russell 2000 is now up +6.84% YTD, in contrast to a -1.49% decline for the Mag-7,""
A 25% tariff on imported computer chips caused a selloff that pushed every Magnificent Seven tech stock lower and dragged the S&P 500 down 0.53%. Meta fell 2.47% and Oracle dropped 4.29%, likely reflecting Oracle's reliance on imported chips for AI data centers. S&P futures rose 0.36% premarket as investors rotated out of megacap tech into other names. The equal-weight S&P gained 0.41% and stands 3.62% year-to-date versus the cap-weighted index's 1.18%. Deutsche Bank noted 318 S&P constituents advanced, the Russell 2000 hit a record and is up 6.84% YTD, and retail investors bought $12.0 billion in cash equities, largely via ETFs.
Read at Fortune
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