Wall Street Today: DJIA, S&P 500, Nasdaq Comp Fall as NVDA, TSLA, Rest of Mag-7 Sink on Tariff Fears
The Dow-30, S&P 500 and Nasdaq Composite all fell by close to or more than 2% Tuesday as fears of a new U.S.-European trade war over Greenland slammed Amazon, Tesla, Nvidia and other large multinational stocks.
The $Nasdaq Composite Index (.IXIC.US)$ sank 561.07 points (2.4%) to a 22,954.32 close, while the $S&P 500 Index (.SPX.US)$ lost 143.15 ticks (2.1%) to 6,796.86 and the $Dow Jones Industrial Average (.DJI.US)$ shed 870.74 points (1.8%) to 48,488.59.
Macro
The three indexes fell after U.S. President Donald Trump threatened over the three-day U.S. holiday weekend to impose big new tariffs on European countries that are opposing his attempts to add Greenland to U.S. territory.
Trump vowed to order new tariffs of up to 25% on eight European countries unless they support his efforts. He later threatened to impose 200% levies on French champagne and other wines as well.
European Union leaders then said they'd consider similar import duties on American goods in retaliation.
The threatened new trade war slammed large U.S. multinational stocks, especially among Big Techs.
For example, all of the "Magnificent Seven" companies fell, led by $Tesla (TSLA.US)$ (down 4.2%), $NVIDIA (NVDA.US)$ (4.3% lower), $Apple (AAPL.US)$ (3.5% weaker) and $Amazon (AMZN.US)$ (3.4% softer).
Mag-7 stocks sank on a combination of "risk-off" sentiment on Wall Street coupled with the fact that U.S. multinationals rely on foreign countries for both supplies and the sale of finished goods.
Adding to the broad market's woes, key Dow and S&P 500 component $3M (MMM.US)$ lost 7% on a combination of the market's general weakness and poorly received quarterly results and forward guidance.
Other members of one or more of the market's major indexes to fall included $IBM Corp (IBM.US)$ (down 4.7%), $American Express (AXP.US)$ (off 4.3%), $JPMorgan (JPM.US)$ (3.1% lower) and $Salesforce (CRM.US)$ (3.1% weaker).
Meanwhile, key non-Mag-7 tech stocks to sink included $NEBIUS (NBIS.US)$ (off 8.7%), $Figma Inc (FIG.US)$ (6.1% weaker), $CoreWeave (CRWV.US)$ (5.9% softer), $Oracle (ORCL.US)$ (which gave up 5.9%), $Broadcom (AVGO.US)$ (5.4% lower), $Taiwan Semiconductor (TSM.US)$ (down 4.5%) and $Super Micro Computer (SMCI.US)$ (which lost 3.8%).
Elsewhere, $Gold (LIST2110.US)$ and $Silver (LIST2093.US)$ hit record highs on a flight-to-safety move amid trade-war fears and U.S. dollar weakness.
$Gold Futures (APR6) (GCmain.US)$ rose as much as 3.8% to a$4,771.50-an-ounce all-time intraday high in U.S. trading, while $Silver Futures (MAR6) (SImain.US)$ rallied 8.2% to a $95.78 intraday record.
However, cryptocurrencies – which sometimes act as a safe haven in troubled times and other times fall on a risk-off move – declined.
$Bitcoin (BTC.CC)$ fell 3.8% to $89,613.99 as of shortly before 4:30 p.m. New York time, while $Ethereum (ETH.CC)$ shed 6.8% to $2,996.49, $Solana (SOL.CC)$ gave up 5.4% to $127.47 and $Ripple (XRP.CC)$ lost 5.4% to $1.89.
Moo-vers
Tuesday's broad sell-off sent all of the "Magnificent Seven" stocks downward.
As previously noted, $NVIDIA (NVDA.US)$ (off 4.3%), $Tesla (TSLA.US)$ (4.2% lower), $Apple (AAPL.US)$ (3.5% weaker) and $Amazon (AMZN.US)$ (3.4% weaker) all fell more than 3% among Mag-7 names.
Fellow Mag-7 stocks $Meta Platforms (META.US)$ (2.6% softer), $Alphabet-A (GOOGL.US)$ (down 2.4%) and $Microsoft (MSFT.US)$ (1.2% lower) declined by lesser percentage amounts as well.
Elsewhere in the market, Tuesday's other noteworthy percentage decliners included:
-- $Rezolve AI (RZLV.US)$, which sank 23%. The AI-powered commerce-solutions firm tumbled after announcing a sale of $250 million of new shares to institutional investors for $4 each, presumably diluting existing stockholders.
-- Select space stocks, which consolidated in an apparent risk-off move following some two months of generally rising prices. Tuesday's decliners included $Redwire (RDW.US)$ (down 9%), $Rocket Lab (RKLB.US)$ (7.4% lower) and $AST SpaceMobile (ASTS.US)$ (2.9% weaker).
-- Some crypto-related stocks, which eased on a combination of Tuesday's risk-averse Wall Street sentiment and the resulting declines for cryptocurrencies. Losers included $Bitmine Immersion Technologies (BMNR.US)$ (down 9.4%), $Strategy (MSTR.US)$ (off 7.8%), $Circle (CRCL.US)$ (7.5% weaker), $IREN Ltd (IREN.US)$ (6.2% softer), $Coinbase (COIN.US)$ (which shed 5.6%), $Applied Digital (APLD.US)$ (which gave up 5.2%) and $Robinhood (HOOD.US)$ (2.7% lower).
Conversely, Tuesday's major percentage gainers included:
-- $ImmunityBio (IBRX.US)$, up 17.4%. The biotech rose on word of a positive U.S. Food and Drug Administration meeting regarding its bladder-cancer drug Anktiva. IBRX has gained 227.3% over 12 straight winning sessions on several positive catalysts.
-- $Ondas (ONDS.US)$ , 8% stronger. The drone-and-wireless defense-oriented stock continued a recent rally that's seen it gain 55.2% since its Dec. 29 close.
-- Select rare-earth stocks, which rose on apparent fears that fresh trade wars could hurt supplies available to U.S. companies. Gainers included $USA Rare Earth (USAR.US)$ (up 8.5%) and $Energy Fuels (UUUU.US)$ (7.2% stronger).
Disclaimer: This presentation is for informational and educational use only and is not a recommendation or endorsement of any particular investment or investment strategy. Indexes are unmanaged and cannot be directly invested in. Past performance is no indication of future results. Investing involves risk and the potential to lose principal. Investment information provided in this content is general in nature, strictly for illustrative purposes, and may not be appropriate for all investors. It is provided without respect to individual investors' financial sophistication, financial situation, investment objectives, investing time horizon, or risk tolerance. You should consider the appropriateness of this information regarding your relevant personal circumstances before making any investment decisions. Past investment performance does not indicate or guarantee future success. Returns will vary, and all investments carry risks, including loss of principal.
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
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Jerry Kronenberg
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Former top editor at Seeking Alpha, Fidelity.com, TheStreet.com and UPI.
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vkp : Tariffs are no longer “new information”.
• Companies have diversified supply chains since 2018–2020
• Non-US Governments have contingency playbooks
• CFOs have hedged FX, pricing, and sourcing
So each new tariff threat/headline moves markets less than the previous one.
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嘴炮 : Typical Western propaganda tactics: first, they set up a false target for you to attack. The real situation is the poor economy, the collapse of AI valuations, and capital outflows.
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