U.S. stocks fall sharply due to tech sell-off

US stocks fell sharply on Tuesday, with a focus on technology companies like Tesla. Investors are worried about former President Donald Trump's economic and trade policies, leading to a sell-off in riskier investments. The S&P 500, a key stock market index, dropped 1.1% by mid-morning. Most sectors of the index were in negative territory. Consumer cyclicals, which usually decline during economic worries, saw some of the biggest losses. The Nasdaq Composite, which includes many tech stocks, fell 1.8%. This wiped out gains made on Monday. Tesla shares tumbled 5.8%, down nearly half from their peak in December. Nvidia shares also fell 3.5% ahead of a major speech from their CEO. Investors are increasingly concerned about Trump's tariffs on major trading partners, which might be slowing growth and increasing inflation. A Bank of America survey showed a record drop in US equity allocations this month. A New York Federal Reserve survey indicated that the business climate in the region is worsening, with job losses and rising input prices. However, a separate Fed report revealed that US industrial production rose 0.7% in February, which is better than expected. This news may help ease recession fears, according to analysts. Despite this positive news, experts warn that the impact of Trump's tariffs is yet to be fully felt. Many tech stocks have dropped significantly as investors move away from high-risk investments, with a key tech index down 17% since February 19.