Apple Stock Falls 5% As February Tariffs Confirmed, Tesla Stock Gains 5%
A while ago there was news of tariffs being postponed to March, but that has been denied and Apple stock has crashed $12 lower, losing 5%.
A previous Reuters report suggested that former U.S. President Donald Trump was set to impose tariffs on Canada and Mexico starting March 1. However, White House officials later dismissed the report as “false.” Despite this, they reiterated that Trump remains committed to implementing 10% tariffs on Chinese imports and 25% tariffs on Canadian and Mexican goods by Saturday.
There was initial speculation that a mechanism for product-specific tariff exemptions might be introduced, but the White House stated that no such updates were available. Officials also emphasized that they do not expect a trade war with Canada and that Trump will respond to Canadian Prime Minister Justin Trudeau’s comments at an appropriate time. In response to the conflicting reports, the Canadian dollar quickly lost its earlier gains, while the U.S. dollar strengthened across the board.
Tech Sector Performance and Apple’s Reversal
The stock market heatmap earlier today showcased a mixed picture, with the technology sector initially leading the rally. Apple (AAPL) was the standout performer in the pre-market, surging 4% overnight after the higher earnings, despite the lower iPhone sales in China. However, the stock has since erased all those gains and is now down nearly 5% from its peak, currently trading 0.5% lower as it fell to $235 from $248 earlier. Microsoft (MSFT) also contributed to early market strength with a 1% gain but has since given back some of its momentum.
The semiconductor industry presented a divided outlook. Nvidia (NVDA) and Broadcom (AVGO) both saw early gains of around 2%, signaling bullish sentiment in the sector. However, these gains faded, with AVGO returning to flat, highlighting the ongoing volatility in chip stocks.
Tesla’s Climb and Technical Outlook
Tesla (TSLA) saw a significant move higher, climbing nearly 5% and breaking above $410. The stock had previously retreated in December but found strong support at the 50-day Simple Moving Average (SMA), marked in yellow. From there, buyers stepped in, pushing prices higher. However, Tesla now faces resistance at the 20-day SMA (grey), which has capped further upside momentum. If buyers can clear this hurdle, TSLA may continue its recovery, but failure to do so could trigger another pullback.
S&P 500 Live Chart
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