The start of 2024 saw a plummet in technology shares due to the expectations of newly implemented tariffs on tech giants. With the possibility of significantly higher prices for product and services, technology shares across the board felt the impact of the new regulations.
The impact was felt most in the tech giants, Apple, Microsoft, and Google. Apple stocks dropped to the lowest they had been in three years, Microsoft felt the impact more acutely, with their shares plummeting 8% in the first few days of the year, and Google felt a more moderate 4% decrease in their shares.
Aside from the big three, many others felt the impact of the news. Social media, telecommunications, and internet platform companies also experienced sharp declines in share prices as the news of the tariffs spread. Many of the companies that experienced this jump or dip in share prices have been relying on investments from foreign nations and are predicted to be more affected by the new tariffs.
Unfortunately, other tech-related indices such as the NASDAQ tech index felt the effects too. As the morning of the second trading day passed, the index plummeted over 10%, the most in a single trading day since the market crash of October 2020.
Investment experts are quick to point out that this is only a temporary setback. They assure us that losses will be recovered as tech companies adjust to the new tariffs and new markets are opened up. Until then, tech companies are advised to make wise investments in research and development, and stick to their long-term strategies in order to weather the storm.
With many expecting tech-based products and services to become more expensive, investors should take caution when dealing with tech shares in the near future. Nevertheless, for those willing to brave the storm and invest in tech companies, the long-term benefits may outweigh this blip in the market. As the saying goes, to make it through a storm, you’ve got to keep your sail up.