Stock market today: Dow drops 800 points as S&P 500, Nasdaq slide on Trump tariff fears, AI 'scare trade'

February 23, 2026 - 19:53

Wall Street opened the week with a sharp sell-off, as investors grappled with renewed fears of a global trade war and a significant pullback in the high-flying technology sector. The Dow Jones Industrial Average plummeted over 800 points, while the S&P 500 and Nasdaq Composite posted steep losses in a broad-based retreat.

The primary catalyst for the decline was a resurgence of concerns surrounding former President Donald Trump's tariff proposals. Over the weekend, Trump reiterated his commitment to imposing sweeping import taxes if re-elected, sparking alarm among businesses and investors about potential disruptions to international trade and economic growth. This anxiety overshadowed other political developments and shifted market focus squarely to trade policy uncertainty.

Compounding the pressure was a pronounced sell-off in major technology and artificial intelligence stocks, described by some analysts as an "AI scare trade." After a monumental rally this year, several key players in the semiconductor and software space saw significant profit-taking. This retreat suggests a growing nervousness about stretched valuations in the tech sector, even as the long-term outlook for AI adoption remains strong. The combination of macro-economic trade fears and micro-sector profit-taking created a perfect storm, driving one of the worst trading sessions of the year and signaling a potential shift toward a more risk-averse market sentiment.