Senior analysts warn of “Armageddon Economic” for the technology sector if the current definitions remain: “This is nervous as I saw investors since Covid” – Microsoft (Nasdaq: MSFT), Apple (Nasdaq: Aapl)

On Thursday, the technology sector witnessed a significant decrease, with NASDAC closed by 6 %. This represents one decrease for one day of technology shares for more than five years.

What happenedThe sharp fall has decreased widely in relation to the future of the technology sector. Dan EveHead of Global Technology Research in Securities Wedbush, Talk to CNBC The fall of the market was linked to the proposed tariffs and its potential effects on global supply chains and consumer costs.

The technology sector, which was a traditional preferred preferred among investors, found himself in a weak position due to fears of economic turmoil. Evis described the situation as “mainly the economic hormone” if the current tariff proposals are not reviewed, which could impose a 54 % duty on Chinese imports.

Companies with great exposure to China, such as Nafidia Company Nvdaand Apple Inc. AaplAnd various semiconductor companies, carry the sales. The wonderful seven shares witnessed a loss in the collective market for more than one trillion dollars on Thursday.

Evis stressed the unprecedented uncertainty that led to the market, saying: “This is tense as I have seen investors since Kofid March 2020.”

In the period before the upcoming profit calls, IVES has identified three main factors for investors to watch:

First, the future of definitions is uncertain. Economic Adviser Peter Navarro The potential negotiations were hurt, but if the definitions remain, IVES warned that it may reduce the demand by 15-20 % due to high costs. Second, the lack of clear guidance from companies due to the “nature that wears the head of definitions” can exacerbate market tensions. Finally, Evis referred to specific areas of focus: the artificial intelligence revolution, the construction of the data center, and consumer confrontation products such as iPhone.

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Why do it matterDan Evat is usually optimistic about the possibility of technology, however, it has turned into caution because the proposed definitions, which aim to enhance local manufacturing, can disrupt supply chains that have been seized over decades.

IVES highlighted the gap between policy data and real challenges, warning that the transfer of production entirely to the United States can significantly raise the costs of technology giants such as Apple.

“Talking to the microphone in the Code of Region 202 is very different from the reality of moving the supply chain.”

Despite the current disturbance in the market, Ives maintains a long -term cautious optimism, as advice is provided to investors in view of the immediate chaos and considering potential purchases if the tariff fears are easy.

“You have to look at the other side, assuming a kind of natural profit until 2025 until 2026,” advised to name Microsoft Msft Apple as a possible purchase if the concerns of customs tariffs are calmed down.

Information Technology Index Fund at Vanguard ETF VGT 7.24 % decreased, while Select Security SPDR FUND technology Xlk 6.82 % fell on Thursday.

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Slip: This content was partially produced with the help of artificial intelligence tools and was reviewed and published by Beenzinga editors.