Shares of Dell Technologies (NYSE:DELL), Hewlett Packard Enterprise (NYSE:HPE) and NetApp Inc. (NASDAQ:NTAP) are trading lower Thursday, following Wednesday's sharp rally, which was driven by President Donald Trump's surprise decision to pause tariffs on non-retaliating countries.
What To Know: That pause, intended to reward allies while imposing a steep 125% tariff on Chinese imports, had initially sparked a surge in risk appetite. Tech and hardware stocks led the rally as investors bet on improved trade conditions and economic momentum. But the sentiment has quickly shifted as the market digests the longer-term implications of an escalated trade conflict with China and the possibility of retaliation or disruption in the supply chain.
The pullback may suggest investors are locking in profits and bracing for volatility, especially in hardware and storage companies that depend heavily on global sourcing and international sales. With China facing aggressive new duties, uncertainty around costs, margins and demand is resurfacing. Treasury Secretary Scott Bessent emphasized the policy shift is meant to address decades of trade imbalances, but markets are now adjusting to the realization that the situation with China may become more unpredictable.
Tech stocks broadly are under pressure, with even major players like Apple, AMD and Nvidia facing losses. The broader move points to a reevaluation of Wednesday's rally and a return to more cautious positioning.
Price Actions: Dell was down 6.24% to $78.94, Hewlett Packard Enterprise dropped 5.24% to $13.74 and NetApp is off 4.44% to $82.28 at the time of publication Thursday, according to Benzinga Pro.
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