On Friday, U.S. stocks plunged after President Trump’s post, wiping about $2 trillion from market value as investors rushed to reduce exposure to trade and tech risk. The S&P 500 closed lower by roughly 2.7%, ending a long stretch of calm trading; the drop reflected a sudden reassessment of geopolitical and policy tail risks — market sell-off coverage.
Chipmakers and AI-focused names led the decline. Large-cap tech names sensitive to China access — notably NVIDIA and AMD — bore steep losses amid worries about export controls on advanced chips and “critical software” that could curb sales into China.
Selling was broad-based: hundreds of S&P constituents closed in the red as leveraged investors and funds raised cash, amplifying the move via margin calls and risk-parity rebalancing. That mechanical liquidation tends to compound initial shocks and widen intraday swings.
Outlook: a fast political de-escalation or targeted exemptions could spark a sharp bounce in beaten-down AI and semiconductor stocks; a sustained escalation would raise risk premia, lift volatility and pressure cyclicals tied to auto and renewable supply chains.
