U.S. technology stocks remained mostly flat on Monday after President Donald Trump revealed a new $100,000 annual fee for H-1B visas. The move is part of his broader immigration crackdown, raising worries about higher labor expenses and reduced access to skilled talent.
The H-1B program enables American firms to employ foreign specialists in fields such as technology and engineering. While the fee applies only to new applications, analysts warn it could limit the supply of skilled workers, push wages higher, and pressure company margins.
Amazon, Microsoft, Alphabet, and Meta are among the top sponsors of H-1B visas, highlighting their reliance on international talent for cloud computing and AI growth. Shares of Cognizant, Intel, and JP Morgan traded within a narrow range as markets digested the announcement.
Jefferies analysts noted that the new fee will increase demand for local workers, driving up wages by as much as 13% and potentially cutting into profits. Lobby groups like India’s Nasscom and the U.S. Chamber of Commerce are expected to oppose the move, claiming it could damage innovation and deter global talent from working in the U.S.
Indian IT companies, which account for the majority of H-1B applicants, are set to feel the heaviest impact. The Indian IT sub-index fell nearly 3% on Monday, dragging the broader Nifty 50 lower. U.S.-listed shares of Infosys and Wipro also dropped as analysts warned that the sharp fee hike may effectively block new applications from Indian firms.
