TLDR
- Technology stocks dropped Tuesday as Trump threatened tariffs up to 25% on countries opposing Greenland’s sale to the United States.
- The tech sector ETF fell 2.2% with Nvidia, Meta, Alphabet down 2%, while Amazon and Tesla dropped over 2%.
- Trump said tariffs could start at 10% in February and increase to 25% by June, also targeting French goods.
- Wedbush’s Dan Ives views the decline as a buying opportunity before Q4 earnings, citing $550 billion in planned AI spending.
- Recommended stocks to buy include Nvidia, Microsoft, Palantir, Apple, Google, Tesla and CrowdStrike.
Markets opened lower Tuesday as technology stocks led declines following President Donald Trump’s tariff threats related to Greenland. The State Street Technology Select Sector SPDR ETF dropped 2.2%.
Trump announced plans to impose tariffs on nations that oppose selling Greenland to the United States. He posted on Truth Social that tariffs would begin at 10% in February. Those tariffs would then climb to 25% by June.
The president also proposed steep tariffs on French products. His criticism of European allies sparked concerns about expanding trade conflicts between the United States and the European Union.
Major technology companies saw share prices fall. Nvidia, Meta Platforms and Alphabet each declined approximately 2%. Apple and Microsoft lost more than 1% each.
Amazon and Tesla shares fell more than 2%. The selling pressure spread to broader indexes. Nasdaq 100 futures dropped 1.8% while S&P 500 futures fell 1.5%.
Dow Jones Industrial Average futures declined 1.4%. The market reaction came as world leaders gather in Davos, Switzerland for the World Economic Forum.
Analyst Recommends Buying Tech Stocks
Wedbush analyst Dan Ives said the market pullback creates a buying opportunity. He expects strong fourth quarter earnings from technology companies in coming weeks.
“Tech stocks will be hit as the ‘risk off dynamic’ hits AI names front and center but ultimately we view this as an opportunity to own the tech winners for 2026 and beyond,” Ives stated. He said tensions between Trump and the EU give investors another chance to purchase leading technology stocks.
Ives believes the AI Revolution remains in early stages. The current political situation won’t change the growth trajectory of the fourth Industrial Revolution in 2026, according to his analysis.
AI Spending and Earnings Season
The analyst highlighted upcoming fourth quarter results as a key catalyst. Based on his research, he expects robust earnings reports from major tech companies.
Big Tech companies plan approximately $550 billion in capital expenditures for 2026. This spending will support continued AI development and infrastructure.
Ives named specific stocks to purchase during market weakness. His list includes Nvidia, Microsoft, Palantir, CrowdStrike and Nebius. He also recommends Apple, Palo Alto Networks, Google and Tesla.
The analyst is currently at the Davos conference. He observed that tariff concerns are affecting the event as Trump prepares to address tech leaders and government officials.
Trump will meet with global CEOs on Wednesday during a special address. A reception with business leaders will take place after his speech. The full agenda has not been released.
Treasury Secretary Scott Bessent urged European nations to avoid retaliating against U.S. tariffs linked to the Greenland situation. Trade policy under Trump will likely dominate conversations at the World Economic Forum.
Ives noted that for the first time in 30 years, the United States leads China in the technology sector. The AI Revolution is being driven by companies including Nvidia, Microsoft, Palantir, Google, AMD and Amazon.
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