Mon Apr 07 13:10:00 UTC 2025: ## Trump’s Tariffs Trigger Market Turmoil, Slamming Tech Stocks

**New York, April 5, 2025** – President Trump’s announcement of new tariffs sent shockwaves through the US and global markets, triggering significant losses and raising concerns about economic growth. The S&P 500 dropped 10% in two days following the April 2nd announcement, with the Nasdaq falling even further, by 11%.

The impact was particularly acute on the semiconductor industry. The Philadelphia Semiconductor Index plummeted nearly 10% on April 3rd and a further 7.6% on April 4th. Nvidia, a leader in AI chip technology, saw its stock price fall over 14% in the same period. Analysts at HSBC downgraded Nvidia, citing concerns about pricing power and supply chain disruptions.

While the White House exempted semiconductors from the tariffs, the broader economic uncertainty and increased import costs are causing ripple effects. Goldman Sachs’ Chief Investment Officer, Ashish Shah, described the tariffs as a “growth shock” that will hurt US consumers.

Even before the tariff announcement, Nvidia faced headwinds, including competition from China’s DeepSeek AI model, disappointing earnings, and a general tech sell-off. Despite CEO Jensen Huang’s assurances that the tariffs would have only a minor short-term impact, Nvidia’s revenue growth has slowed, and profit margins have been squeezed due to the cost of newer products.

Despite the downturn, Bank of America remains bullish on Nvidia, citing its strong balance sheet and leading position in the rapidly growing AI market. The firm also highlighted other semiconductor companies likely to weather the storm, emphasizing those with strong balance sheets, AI exposure, and US-based manufacturing.

Nvidia’s stock closed at $94.31 on April 4th, down roughly 30% year-to-date. However, Bank of America analysts maintain a positive outlook, considering the current valuation compelling and suggesting it presents a significant buying opportunity. The long-term prospects for AI remain positive, and analysts predict that major cloud providers will continue investing in AI, despite higher costs.

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