Nasdaq 100: Apple Slide Pressures Tech Stocks as Financials Lift US Indices

Nasdaq Slips as Apple Retreats; Tech Rally Stalls While Financials Lead

Stocks lost momentum Tuesday afternoon, with the Nasdaq turning negative and the broader S&P 500 paring early gains. Traders initially cheered signs of potential tariff negotiations, but lingering uncertainty and fading momentum cooled the session’s risk appetite. The S&P 500 hovered just under a 1% gain, while Apple’s reversal weighed on tech sentiment.

Is Tech Losing Steam After Monday’s Bounce?

Big Tech attempted a rebound early in the session, fueled by hopes that the White House might ease off aggressive tariff plans. Nvidia climbed over 5%, Microsoft added 3%, and Meta rose nearly 3%. However, the rally faded into the afternoon, and Apple slid 0.6%, extending its three-day loss to nearly 19%. The Nasdaq Composite turned negative, dragged by tech’s mixed performance.

Apple’s heavy exposure to China and ongoing tariff anxiety have amplified selling pressure. Meanwhile, semiconductor names were mixed. Broadcom jumped 5% on a $10 billion buyback announcement, while Marvell Technology rose 3% after a $2.5 billion asset sale. Still, AMD, Intel, and Micron remained under pressure, with investors bracing for potential chip-targeted tariffs down the road.

Which Sectors Are Holding Up Best?

Financials led Tuesday’s gains, with JPMorgan Chase up 4.5% and the banks sub-index advancing 3.3%. The sector benefited from retreating volatility and easing Fed rate cut bets, which helped stabilize yield-sensitive names. Utilities and industrials posted modest gains, while energy and materials lagged. Consumer discretionary and real estate also saw mild losses as traders rotated defensively.

Health insurers surged after the U.S. confirmed a 5.06% rate hike for 2026 Medicare Advantage plans. UnitedHealth Group jumped 7.1%, while Humana rallied 11.2%, marking standout moves in an otherwise cautious tape.

How Are Traders Responding to Tariff Risks?

President Trump’s comments on a “great” conversation with South Korea and statements from Treasury officials hinting at potential trade flexibility initially boosted sentiment. But renewed remarks from U.S. Trade Representative Greer dashed hopes for near-term tariff exemptions. China’s strong rebuttal added to tensions, keeping traders wary.

The CBOE Volatility Index cooled to near 40 after spiking to 60 on Monday. While the pullback offered short-term relief, it still reflects significant investor anxiety.

Market Outlook: Can the Rally Regain Traction?

With earnings season kicking off later this week and tariff rhetoric in focus, traders remain on edge. JPMorgan, Wells Fargo, and Morgan Stanley results on Friday could reset expectations for financials and broader market risk. Meanwhile, continued signals from Washington and Beijing on tariff escalation or reprieve will be key. The S&P 500’s recovery could stall if clarity remains elusive.

More Information in our Economic Calendar.