Wall Street holds its breath from Marketplace. I'm Sabri Beneshore in for David Bruncaccio.

Markets are a little calmer this morning. Investors are looking forward to new data out later that

might offer some relief or at least some more information about the health of the economy.

Yesterday, the NASDAQ had its steepest drop since 2022. The SNP 500 tumbled two and a half percent,

but so far this morning, futures are on their way back up. Marketplace is Nova Sappho's here

with more. Hi, Nova. Good morning. So the Trump administration is discounting the market's reaction

to its tariff policies, but tariff policies have driven a big chunk of

the tumble. So what's the latest from the White House about how they're going to move forward?

Well, it seems to be full steam ahead for now. Kevin Hassett, director of the National Economic Council,

told CNBC that recession concerns over tariff policies are overblown. We've seen multiple

data points suggesting the economy is slowing,

but Hassett said the same thing that other members of the administration and the president, too,

have suggested, and that is that this is all temporary and that tax cuts to come will drive

growth again. Meanwhile, retaliatory tariffs are kicking in from China today. Some new actions also

from Canada as well,

Sabri, so the trade war is in full swing. Markets don't seem that convinced of the administration's

argument so far. But why is it that tech stocks are taking the brunt of the sell off here?

Right. So it's a bit of a, it has to do with what we've had so far, the so-called magnificent seven stocks, which powered so much of the stock rally. Right. So it's a bit of a – it has to do with what we've had so far, the so-called magnificent seven stocks, which powered so much of the stock rally.

Look at one of those stocks. It's Tesla. It's getting pummeled because sales are down significantly ever since Elon Musk took up a high-profile role in the Trump White House.

Also, overall investors are reducing their exposure to riskier investments overall.

And a lot of the magnificent seven rally has been bets on the future, having to do with artificial intelligence, think invidia.

So some of those investments are now getting reversed, Sabri.

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