The US technology sector is facing increasing volatility, with sharp fluctuations in stock prices. Especially after significant losses on March 12, 2025. Experts attribute these downturns to heightened competition from global markets, particularly China. Additionally, there are concerns over US economic stability, leading to fears of a potential recession.
Ramzi Qasmieh, an investment manager at Qatar Securities Company, highlighted that Monday’s market performance was the worst since 2022. The Nasdaq index, which tracks tech stocks, dropped nearly 4%, marking its steepest decline in years. Major tech companies, including Nvidia, Meta (formerly Facebook), and Tesla, saw substantial losses. This reflects broader concerns over US trade policies and their economic impact.
Nvidia, the leading electronic chip producer, saw a 5% drop in its stock price. Meta’s stock fell by 4.4%, resulting in a 16% loss over the past month. Tesla’s shares also lost about 15% in a single session, bringing its year-to-date decline to 45%.
Qasmieh linked these declines to the negative economic effects of tariffs imposed during President Trump’s administration. He noted that these economic shifts have created a tense environment for US tech stocks. This contributed to a broader market downturn. On March 12, the S&P 500 index dropped by 2.7%. Moreover, the Dow Jones Industrial Average fell by 2.1%.
The “Magnificent Seven” tech giants, including Nvidia, Alphabet (Google’s parent company), Apple, Meta, Microsoft, and Amazon, also experienced notable declines. For example, Nvidia’s shares plummeted by 5.1%, while Apple and Microsoft lost 4.9% and 3.3%, respectively.
As uncertainty looms, the Volatility Index (VIX) — a key indicator of market fear — has surged, reflecting growing investor concern. Similar declines were observed in European markets, with major indices like Germany’s DAX and France’s CAC also posting losses.
Dr. Omar Khlaif Gharaibeh, Vice-Dean of the Business School at Al Al Bayt University in Jordan, added that the tech sector’s massive losses are pressuring investors. These losses included a $1.309 trillion drop in the Nasdaq index. Tesla, in particular, was hit hard, with a 16% drop wiping out $436 billion from its market value.
These fluctuations raise concerns about the future of the US technology sector amid global economic uncertainties. There is growing competition from emerging markets.
