Amazon Stock and Palantir Lead Decline as US Stocks Slide Ahead of USMCA Update
Today the US stock markets are tumbling lower again, with Palantir stock and Amazon stock heading the decline, as we await the USMCA details.
Tech Stocks Drag Markets Lower Amid Uncertainty
U.S. stock markets faced another sharp sell-off today, with the Nasdaq dropping over 2%, while the S&P 500 fell 2.3%, hitting session lows. Despite the temporary suspension of Mexico’s tariffs, investor sentiment remains weak, as uncertainty looms over the USMCA trade dispute, which now appears closer to being fully canceled.
Earlier in the session, optimistic signals from U.S. Commerce Secretary Howard Lutnick briefly boosted markets, but selling pressure has intensified in the past hour. Chipmakers and major tech firms have been hit the hardest, with Amazon and Palantir leading the decline. Persistent concerns about AI development, economic growth, and trade policy uncertainty continue to weigh on the market.
Amazon Extends Losses After Sharp Sell-Off
Amazon (AMZN) stock has been experiencing high volatility, falling more than 17% from its early February highs. Last week, shares gapped lower and have continued their downtrend, initially closing below $200. Despite this recent pullback, Amazon stock has still gained 300% over the past two years.
Today, Amazon opened lower and quickly dropped another 4% to $200, pushing deeper into bearish territory. While some investors may see this decline as a buying opportunity, Amazon must break back above the 100-day SMA (red) to regain positive momentum. If the stock remains below this critical level, further losses could follow in the coming weeks.
As the company reshapes its business strategy for 2025, Amazon is making bold moves, including major intellectual property acquisitions and leadership changes. However, near-term uncertainty remains, and investors are carefully watching how these developments will impact the company’s future performance.
Palantir Stock Sinks 8% as Defense Spending Cuts Weigh on Sentiment
Palantir (PLTR) stock has seen a dramatic reversal after a 500% surge, followed by over a year of steady correction. On February 19, the stock hit a new all-time high of $125.41, but momentum shifted sharply downward after reports that the U.S. government reduced the Pentagon’s budget by 8%.
These cuts sparked fears across the defense sector, as companies relying heavily on government contracts—like Palantir—face higher investment risks. In just two weeks, Palantir has dropped 30%, erasing a significant portion of its gains.
There was some stabilization earlier this week, but bullish momentum faded quickly. Today’s U.S. session opened with another bearish gap, and the stock tumbled nearly 8% lower, marking one of its worst sessions in recent weeks.
Market Outlook
The tech sector remains under pressure, with major stocks struggling to regain footing amid trade tensions, government policy shifts, and broader economic concerns. If USMCA trade negotiations break down completely, further downside risk for U.S. equities is likely.
For Amazon, a recovery above the 100-day SMA would be key to restoring bullish momentum, while Palantir investors will be closely watching government spending trends to gauge future risks. Until market uncertainty clears, volatility is expected to persist, and further selling pressure in tech stocks could continue.
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