Shifting Tariff Policy Destroys Market's Technical Support as AI Hype Falls Apart

It was another extremely messy day for the stock market as quickly-shifting tariff policy jerked traders around and destroyed technical support. Even though President Trump delayed tariffs on Canada and Mexico for another month, the market didn’t care because the price action was so poor.

It didn’t help matters that Marvell Technology MRVL had a surprisingly poor earnings report, which helped to destroy both the semiconductor sector, which was hit with a 4% loss, and the Magnificent Seven, which fell 3%. The AI theme continues to fall apart.

Breadth deteriorated to the worst levels in the past couple of weeks, with just 20 of the 101 stocks in the Nasdaq 100 QQQ finishing with gains. Overall market breadth was about 2,000 gainers to 7,500 decliners.

What is most notable about the action is that dip buyers are being slammed every time they try to catch a bounce. There has been a series of intraday reversals, and support levels are not holding. The Nasdaq 100 is now within a couple of points of a 10% drop from the highs it hit on February 19.

Uncertainty about tariffs is a big problem, but there are also other economic issues that cause problems. On Friday morning, we will see the February jobs numbers, which should cause more debate over the potential issue of stagflation. Interest rates were higher again on Thursday, and the dollar hit new post-election lows.

It is a mess, but eventually chaos will lead to opportunities. We just need to stay patient and make sure we have capital to work with. I can guarantee we will eventually see a big rally. I don’t know when or from what levels, but that is how the market always works.

Have a good evening. I’ll see you tomorrow.

At the time of publication, DePorre had no positions in any securities mentioned.