Market Volatility Hits Tesla, Nvidia, and CarMax Amid Tariff Concerns

Stock prices of semiconductor and automotive companies decrease due to worries about tariffs causing unease in the markets.

On Thursday, the U.S. stock market faced pressure due to escalating trade disputes. The Nasdaq dropped by 7%, the S&P 500 declined by 6%. The Dow decreased by 5% following President Donald Trump’s announcement of a 90-day halt on tariffs. Although this action was meant to alleviate tensions, it raised worries about long-lasting effects on various industries.

Tesla saw a decline in its stock value following reductions in price targets by UBS and Mizuho due to concerns about tariff impacts on the electric vehicle industry. At the time, the automotive retail sector experienced a setback, with CarMax’s shares dropping as they missed earnings expectations and sales targets. This suggests challenges ahead for retail-related car companies.

Semiconductor stocks experienced declines, with companies such as Nvidia, Broadcom, and Micron Technology witnessing significant drops in their share prices. Consequently, the PHL Semiconductor Index SO has fallen by approximately 10%. These shifts highlight concerns among investors regarding trade tensions and the vulnerability of supply chains.

Defensive investments gained momentum as Barrick Gold and Newmont saw an increase in value due to the rise in gold prices while investors shifted funds toward precious metal assets traditionally considered safe havens. Meanwhile, oil prices experienced a decline, and the 10-year U.S. Treasury yield decreased further, indicating a shift toward investments.

Currencies and digital assets were also under some pressure as the U.S. dollar weakened against currencies, and cryptocurrencies saw a decline in value throughout the trading session.