Alphabet stock shares rise 3% in premarket after tariff relief
Google shares jumped nearly 3% to trade around $157.30
Alphabet Inc. Class A shares (GOOGL) started the new week on a stronger footing following one of their steepest weekly losses in 2025.
The recovery comes as broader tech sentiment improved after the United States and China announced a 90-day reduction in trade tariffs, lifting demand for megacap stocks during premarket hours on Monday.
Last week, Google stock fell sharply after testimony from an Apple executive suggested that AI-based search alternatives are gaining traction, posing a threat to Google’s core advertising business. The bearish narrative triggered a selloff that pushed the stock down to a weekly low of $148 before buyers stepped in at a demand zone, allowing the stock to recover to close the week at $152.70.
GOOGL stock price dynamic (Feb - May 2025)
Technically, the damage from last week’s move was evident on the 4-hour chart, where the 20 and 50 exponential moving averages (EMAs) formed a death cross. This typically signals continued downside pressure. The RSI on both the daily and 4-hour timeframes also entered bearish territory, reinforcing the view that sellers still hold some control.
Alphabet sentiment torn between AI disruption risks and 90-day tariff reprieve boost
However, Monday’s session has complicated the technical picture. During premarket trading, Google shares jumped nearly 3% to trade around $157.30, lifted by positive sentiment across the tech sector after the tariff relief announcement. This move reclaimed the $156.50 resistance level, though price is currently capped by the bearish-aligned 20 and 50 EMAs.
The near-term focus is now on whether the stock can break above the EMA resistance near $157.30. If it succeeds, it could suggest that investor concerns over Google’s AI-driven competition are easing, at least temporarily. In that scenario, the next upside target would be the $161.50 resistance level.
The broader question remains whether markets will continue to prioritise the trade optimism or refocus on the fundamental threat to Google’s search dominance. How price behaves around the current resistance zones could offer insight into which narrative investors are leaning toward. A failure to sustain above $156.50 may expose the stock to further losses, especially if AI competition continues to dominate headlines.
Alphabet shares fell sharply after AI competition raised concerns over its search dominance. Price action turned bearish as the stock failed to hold above key resistance near $164.
