AI and Tariff Shock on Wall Street: Sharp Sell-off in Tech Stocks

Sharp Retreat in Wall Street Indices Wall Street's main indices recorded sharp declines on the first trading day of the week, driven by concerns over AI-led sectoral transformation and uncertainties in global trade policies.
The Dow Jones Industrial Average lost approximately 822 points (1.7%), while the Nasdaq Composite fell 1.1% and the S&P 500 index declined by about 1%.
The selling pressure in the market deepened as investors moved away from technology and financial stocks toward safe-haven assets.
IBM shares notably lost approximately 13% of their value.
This decline was triggered by announcements that Claude Code, developed by Anthropic, could modernize the COBOL programming language widely used in IBM systems.
This concern regarding the future of traditional technology service models also negatively impacted other software giants such as Microsoft and CrowdStrike.
Global Trade Wars and Tariff Threats U.S.
President Donald Trump's threat to raise global tariffs to 15% escalated geopolitical tensions and market risks.
Following signals from the White House that a general tariff could be applied to all imported products, the European Union announced it has suspended the trade agreement process with the United States.
In this environment of uncertainty, the U.S.
10-year Treasury yield fell to 4.03%, as investors turned to gold and bonds in a search for safety.
In the cryptocurrency market, Bitcoin dropped below the $65,000 threshold.
Markets Await New Data Analysts state that an unhealthy sector rotation is occurring in the market and that the loss of momentum is becoming more apparent.
In the coming days, consumer confidence data and Home Depot's balance sheet, along with financial results from technology giants such as Nvidia, Salesforce, and Snowflake, will be of critical importance for the market's short-term direction.