A broad selloff erased billions in market value Tuesday as investors retreated from high-flying technology stocks, spooked by President Trump’s escalating trade war threats against European allies.
The downturn was sparked by the President’s vow to impose sweeping 10% to 25% tariffs on goods from several European nations—including Germany, France, and the UK—until the U.S. is permitted to acquire the Danish territory of Greenland.
The news sent shockwaves through the tech sector, with Nvidia (NASDAQ:NVDA) and Broadcom (NASDAQ:AVGO) each sliding more than 3%.
Tesla (NASDAQ:TSLA) and Amazon (NASDAQ:AMZN) also saw losses near 3%, while the rest of the "Magnificent Seven" traded lower as the market grappled with the prospect of retaliatory measures from the EU.
While geopolitical tension was the immediate catalyst, analysts noted that the retreat highlights deeper investor anxiety regarding a potential AI bubble.
High-growth cloud providers like Nebius (NASDAQ:NBIS) and CoreWeave (NASDAQ:CRWV)—both central to the AI infrastructure boom—shed 6% and 4% respectively.
Even Oracle (NASDAQ:ORCL), which recently doubled down on AI capital expenditures, fell 4% amid concerns that its massive debt load is approaching junk-bond status.
The "Magnificent Seven" have collectively lagged the broader S&P 500 so far in 2026, dropping over 3% in January as the market demands proof of return on massive AI investments.