Tech Stock Declines: 3 Crucial Things Every Investor Should Do Now

The S&P 500 has climbed over the past three years, and this year it added to those gains. But this hasn't been without volatility -- particularly in 2026. The famous benchmark fluctuated between gains and losses earlier in the year amid concerns about the U.S. economy, turmoil in Iran, and questions about the sustainability of the artificial intelligence (AI) growth story.

The index has since rebounded significantly, but in recent days, a bit of volatility has returned. And a handful of tech stocks, the biggest stock market winners -- from newly launched Space Exploration Technologies, or SpaceX, to long-established tech giants like Alphabet and Meta Platforms -- have seen their share prices suffer. Over the past several months, periodically, investors have worried about the spending levels in AI and whether the long-term revenue opportunity will justify all of the investment. This is a concern that has weighed on tech stocks and put pressure on the overall market -- even as tech players have spoken of strong AI demand.

Though declines and volatility are never pleasant, the good news is they aren't dangerous or permanent. And you can take action to protect your portfolio as the storm passes. In these moments, here are three things every investor should do.

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1. Don't sell

When you see high-quality stocks, companies that have delivered earnings growth over time, decline, you might worry and be tempted to sell. But that's the worst thing you could do. Times of market volatility and declines are normal, and importantly, they are transient. So it's very likely that the top stock that's in the doldrums right now will rebound and go on to gain -- sometimes this will happen quickly, in a period of days or weeks, and other times it may take longer. But indexes and strong companies have proven this pattern of recovery and growth time and time again.

This means that during a downturn -- whether it lasts days or a lot longer -- the best thing to do is to hold onto your positions.

2. Banish short-term thinking

This brings me to my second point. Whether indexes are rising or falling, it's crucial to banish short-term thinking. This sort of thinking pushes us to make poor decisions: For example, when stocks are soaring, we may rush to get in on the hottest stocks and pay too much for them. And during stock market downturns, we might panic as we see one of our favorite stocks tumble -- and sell at a loss.

Instead, it's a better idea to pay little attention to day-to-day stock price movements and consider the long-term picture. By this, I mean looking at a company's prospects over the coming five to 10 years. From this angle, even concrete near-term headwinds may look less intimidating.

And by taking this long-term view, you'll be less tempted to sell a stock -- even if its price is tumbling.

2. Look for opportunities

In times of volatility or when the stock market is falling, buying stocks may be the last thing on your mind. But this actually should be the first thing on your mind. Of course, I wouldn't recommend rushing out to buy just any stock. Instead, it's a great time to take a look at quality companies that have seen their shares soar in recent weeks or months.

Often, when volatility increases, these stocks that have performed so well may quickly retreat. This generally doesn't have to do with their long-term earnings prospects. In many cases, it's a broad movement, sweeping up certain categories of stocks. For example, in recent days, we've seen sudden declines in AI stocks -- so this would be the moment to take a close look at well-established winners, such as Nvidia, Alphabet, and Meta, and consider their valuations.

After declines, they may be trading at interesting levels -- meaning that you, as a long-term investor, could benefit by scooping them up while they're down rather than waiting for them to return to pricier levels.

So, during times of volatility or declines, one of your best moves won't be selling -- it's seizing opportunities and holding on for the long term.

Adria Cimino has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Meta Platforms, and Nvidia. The Motley Fool has a disclosure policy.