The stock of Unity, a game engine maker, experienced a 6.3% decline in the morning session due to concerns over potential reciprocal tariffs that may be announced later in the week, targeting countries with a trade deficit with the United States. The tariffs are expected to increase input costs for businesses, leading to fears of stagflation (slower economic growth and rising inflation). This news caused market jitters, prompting a drop in Unity’s stock price. However, the market views this development as significant but not altering its overall view of the company.

Unity’s shares have shown high volatility, with 39 movements exceeding 5% in the past year. Despite today’s decline, it is not perceived as a fundamental shift in the business outlook. The recent stock market rally following reports of narrower targeted reciprocal tariffs showed that investors were less concerned about the potential negative economic impact initially feared.

Currently, Unity's stock is down 20% since the start of the year, trading at $19.59 per share, which is around 30.9% below its high of $28.34 in February 2025. This presents an opportunity for investors to consider buying high-quality stocks at a discounted price. StockStory recognizes the potential of thematic investing, highlighting a lesser-known growth stock in the AI sector, which can be accessed for free through the provided link.