IXIC: Nasdaq Composite Plunges as Markets Digest Tariff Hikes, Nvidia Sheds 8%

Tech-heavy index shifted lower, dragged by falling shares of Nvidia. The S&P 500 wiped all its gains of 2025.

💫 Nasdaq Tumbles as Tech Sells Off

• The Nasdaq Composite IXIC plunged 2.8% on Thursday as tech shares left and right were selling off. Investors were running for cover after Donald Trump reaffirmed his intention to slap lofty tariffs on Canada and Mexico and doubled down on China.
• The two US neighbors will start paying 25% tariffs on Tuesday while China got its levies doubled to 20%, from 10%. China’s response is yet to be announced but markets fear trade wars just got (even more) real.

😵 Nvidia Gets Knocked Down

• In all that chaos and market turmoil, Nvidia NVDA delivered its best quarter ever. The chipmaker released its financials for the three months ending January 26 but traders weren’t in the mood for buying. Shares of Nvidia plummeted 8% as selling accelerated as the session unfurled.
• The S&P 500 ended the day lower by 1.6% and is now gainless for 2025. At its peak for the year, the broad market index was up by roughly 5%. The Dow also logged a loss but remains up 2% on the year.

🏷️ Putting Things into Perspective

• What to do when things are going down? Judging by futures trading Friday morning, investors are excited to buy the dip. Futures contracts tied to the Nasdaq were up by 0.2% while shares of Nvidia were trading higher by 0.8% ahead of the opening bell in New York.
• But recovery might not be that easy (or quick). The proposed tariffs could dent consumer demand, raise inflation and eat into corporate America’s profits and revenue. And that could lead to higher interest rates by the Federal Reserve. And that could bring the bears on the scene.