Traders on the floor of the New York Stock Exchange witnessed a decline in chip stocks on Friday following President Donald Trump's imposition of global tariffs. The market reacted negatively to the news with the PHLX Semiconductor Index (SOX) dropping about 7%. Companies like Marvell Technology, Coherent, Entegris, and Micron Technology experienced losses exceeding 7% each. These developments further highlighted the ongoing trade tensions and the potential impact on electronics demand.

Nvidia, a popular stock in the previous year, also saw a decline of over 7% in recent trading sessions. Analysts from UBS noted the possible adverse effects on electronics demand due to the tariffs affecting countries involved in the production chain. Citi analysts suggested that analog chipmakers like Analog Devices might fare better within the semiconductor sector during such downturns.

The market reacted broadly to the recent tariff announcements, with all major indexes down by about 4%. The S&P 500 sectors all showed declines, including the semiconductor and equipment subindex dropping by approximately 7%. China's retaliation with tariffs on US imports added further pressure on the market.