Tech Stocks Tumble: Palantir (PLTR) and AMD Stock Dive After Hours Despite Softer Tariffs
Trade tariffs have been announced, and stock markets have tumbled after the close, with AMD and Palantir stocks leading the fall.
Market Optimism Fades as Tech Stocks Reverse Gains
The stock market started the week on a positive note, with Palantir (PLTR) and AMD both enjoying early gains as investor sentiment remained upbeat. Palantir surged nearly 6% during the US session, while AMD also traded higher, following a broader rally in artificial intelligence and technology stocks.
However, the optimism was short-lived. As the US market closed, tech stocks faced a sharp reversal, erasing earlier gains and sending several major names into negative territory. Meta, AMD, and Palantir all posted significant losses in after-hours trading, as investors reacted to the latest trade developments and shifting market sentiment.
Palantir Faces Another Volatile Session
Palantir’s stock has been on a rollercoaster ride throughout 2024, experiencing frequent price swings and unpredictable momentum shifts. Last week was no exception.
The stock rallied nearly 5% in the first half of the week, only to erase those gains by Friday, closing at $85.07, down almost 8%. This pattern continued into the new week—PLTR shares opened with a small gap at $80, climbed to $87.50, then suddenly dropped to $81.40 in after-hours trading, shedding nearly 7% from its peak.
Whether Palantir rebounds in the next session remains uncertain, as market volatility continues to dominate investor sentiment. Much will depend on how traders interpret the latest tariff measures and economic outlook in the coming days.
AMD Struggles as AI Boom Fizzles
Advanced Micro Devices (AMD) has been caught in a downward spiral since hitting its all-time high of $227 in March 2024. Over the past year, the semiconductor giant has lost more than half its value, as the initial AI-driven rally has given way to skepticism about long-term growth and demand.
AMD attempted a comeback in March, but buyers failed to sustain the momentum, leaving the stock vulnerable to renewed selling pressure. Last week, AMD closed down 6% at $103.22, signaling continued investor caution.
The start of this week appeared promising, with AMD briefly climbing above $104, but the optimism quickly faded. After-hours trading saw the stock dip below $100, a 4% decline from its closing price, as traders reacted to the latest trade tariff announcement.
Tariffs Announced, But Market Reacts Cautiously
While the market had been bracing for harsh trade measures, the actual tariff announcement was somewhat softer than expected. President Trump confirmed that the US would implement reciprocal tariffs, mirroring the duties imposed by other nations on American goods.
Key details of the tariff policy include:
A baseline 10% tariff set to take effect on April 5.
Additional tariffs for countries classified as trade “bad actors.”
Higher reciprocal tariff rates to be enforced for about 60 nations starting April 9.
While these measures are less severe than initially feared, tech stocks still reacted negatively, with investors uncertain about the broader economic implications.
Looking Ahead: Can Tech Stocks Recover?
The sharp after-hours decline in PLTR and AMD raises concerns about whether the recent tech rally has run its course or if this is just a temporary pullback. Investors will be closely watching how the broader market reacts during the next trading session, particularly in light of the ongoing trade developments and global economic outlook.
For now, tech stocks remain under pressure, and it remains to be seen whether they can stage a comeback or if the selloff will deepen in the coming days.
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