Tariff threats and replacements have triggered short Nasdaq selloffs this year, followed by a tech-led rebound. The sharpest drops came after February tariff upheaval, while September showed strength despite higher rates. The Nasdaq Composite and Nasdaq-100 are tech-heavy U.S.
stock indexes focused on growth stocks. January brought a fast on-off threat tied to Greenland. February brought a court ruling plus replacement tariffs and lower tech prices. September then tested whether tech could rise with higher interest rates.
Table of Contents
- What started tariff volatility in January?
- Why did a court win for importers still hurt tech?
- How did tech hold up in September?
- What should investors watch next?
What started tariff volatility in January?
On Jan. 17, President Trump threatened a 10% tariff from Feb. 1 on goods from eight European allies over Greenland, rising to 25% June 1 absent a purchase deal. That threat was scrapped Jan.
21, hours after Trump restated demands for title and ownership, according to the Daily Reflector timeline. The quick reversal created headline risk for import-exposed companies. Investors had little time to price supply-chain costs before the policy changed. That pattern of sudden announcement and revision repeated later in the year.
Why did a court win for importers still hurt tech?
On Feb. 20, the Supreme Court voided broad reciprocal tariffs and Trump replaced them over the weekend with a temporary global tariff raised from 10% to 15% under Trade Act Section 122. On the next trading day, the Nasdaq Composite fell 1.1% to 22,627.27, with tech, software and import-exposed firms hit, according to the Zylostar News market report.
The market repriced higher costs rather than celebrating the ruling. Replacement tariffs kept pressure on margins for hardware, software and consumer-tech sellers. Uncertainty about duration and refunds added to selling pressure.
How did tech hold up in September?
On Sept. 16, the Fed raised rates 25bp to 3.75%-4%, its first hike since July 2023 amid tariff-driven inflation. In September the Nasdaq-100 still rose 3.30% while the S&P 500 slipped 0.35%, according to the Providend September market review.
That split showed large tech leading while broader stocks lagged. Strong earnings and demand helped offset higher borrowing costs. Rate-sensitive sectors felt more pain than dominant technology names.
What should investors watch next?
Single-day Nasdaq moves cannot be credited to tariffs alone because AI-disruption fears, oil above $90 and jobs data hit at the same time. Investors should watch inflation, Fed guidance and refund litigation alongside tariff headlines, according to the Eurasia Business News market update. Useful checks before adding tech exposure include: Check those three signals together before reacting to one tariff headline.
- CPI report for tariff-driven price pressure
- Fed statements for rate-path signals
- refund and replacement-tariff headlines for cost outlook