Nasdaq, Tesla, Nvidia fall in wake of increased volatility and economic instability

Nasdaq, Tesla, Nvidia fall in wake of increased volatility and economic instability

The U.S. stock market started mixed due to the influx of reversals following recent declines. However, the Nasdaq fell more than 2% at one point due to weak Tesla (-8.39 percent), semiconductors, and large technology stocks. In particular, it reacted to a number of negative factors such as Trump’s tightening of regulations on semiconductors with China, the House’s budget resolution, and Secretary Bessent’s remarks. However, the volatility of individual stocks has increased due to the recent decline while the House of Representatives has reduced some of the fall on the news of procedural voting on the budget bill

*Variants: Economic Insecurity, Semiconductors, Budget, Vescent

With U.S. retail sales plunging 0.9% month-on-month recently, the consumer sentiment index shrank sharply from 71.7 to 64.7, stimulating jitters over the U.S. economy, which reflects a drop in consumption. Meanwhile, the consumer confidence index contracted from 105.3 to 98.3, the biggest monthly drop since August 2021. It is believed to be the result of high prices and other factors, further stimulating economic jitters. The result is a fall in interest rates, a slump in the stock market and a weaker dollar.

Meanwhile, Trump strengthened control over semiconductors in China and administration officials met with Dutch and Japanese officials to exchange views on restrictions on exports and maintenance of semiconductor equipment to China. On the related news, semiconductor-related stocks fell, acting as one of the factors behind the index’s sluggishness. However, given that the related content has been mentioned continuously and that many of the lines have been reflected, the decline in semiconductor-related stocks during the day has been reduced and the index has also been reduced, increasing volatility

In December, Congress passed the budget bill until March 14. If the resolution or annual budget bill does not pass, the government will be shut down. Amid this development, House Speaker Johnson mentioned the possibility of postponing the vote, putting pressure on the stock market. The problem is that there are only 217 House Republicans, so if two Republicans oppose it, it will not pass the vote, and two Republicans have already publicly announced their opposition to the budget bill. However, due to the fact that the bill passed an intraday procedural vote and is set to be voted at the plenary session as early as Tuesday (April 25), the stock market has been partially reduced

In addition, it is also burdensome that Secretary of the Treasury Bessent mentioned that the U.S. economy has become weak due to excessive spending by the Biden administration. In particular, he mentioned that the recent job growth is concentrated in the government and adjacent sectors of the government, so the job market is also not good. In addition, he argues that economic growth should be shifted from the government sector to the private sector, and that it aims to reduce government spending while easing monetary policy. Related news is also an unsettling factor

Major theme stocks, which are individual investors’ preferences, fell sharply and Tesla (-8.39%) and large technology stocks were sluggish considering the investor sentiment dampened by these changes. On the other hand, economic defense-oriented utilities and essential consumer goods are undergoing a solid differentiation

*Featured Stocks: Tesla, Semiconductor, Key Theme Stocks Slump

Tesla (-8.39 percent) fell nearly 10 percent despite news that the company is releasing software updates similar to its FSD (Full Self-Driving) system in China. Tesla’s sales in Europe fell 45 percent despite a 37 percent year-on-year increase in total electric vehicle sales in January. The reason for the decline was a shift in manufacturing, but it expanded into a dislike for Musk after he actively intervened in European politics by supporting Germany’s far-right Afd party and actively intervening in election campaigns, and raising public opinion polls on whether the U.S. should free the British people from a tyrant government. It is estimated that the aftermath eventually weighed on Tesla’s sales. The plunge in Bitcoin, which had a positive impact on its recent performance, also weighed on the burden. Rivian (-4.26%) and Lucid (-6.12%) were also sluggish. Lucid rose 5% after-hours after-hours as its earnings were lower than expected and sales were good after the market closed

Nvidia (-2.80%) fell 4.5% at one point after the Trump administration became aware of strict regulations on chip sales to China. This is estimated to be due to concerns that the suspension of sales of Chinese companies could slow down the performance. However, the expansion of volatility during the day continues, with backlash buying flowing in ahead of the earnings announcement (the 26th) and the drop shrinking until once flat. Broadcom (-2.59%), TSMC (-1.19%), Micron (-2.30%), ASML (-0.78%, Intel (-5.27%,) and Ram Research (-3.66%) also fell. Philadelphia Semiconductor Index fell 2.29%. Dell (-3.06%) fell due to AI server sales anxiety ahead of the earnings announcement (the 27th). Super microcomputer (11.76%) will go on sale for the deadline for submitting its accounting report, falling

Apple (-0.02%) rose in anticipation of the news that it agreed with Indonesia on the terms of lifting the iPhone 16 ban, that it will hire 20,000 people over the next four years to further spur the AI industry, and an increase in dividends at the general shareholders’ meeting, but it turned downward as it went up for sale. MS (-1.51%) fell in the aftermath of TD Cowen’s recently filed report on the reduction of data centers. Amazon (+0.04%), Alphabet (-2.11%), and Meta Platforms (-1.59%) also went up for sale, highlighting the controversy over monetizing the AI industry. However, Amazon dropped 4% and turned upward on the 21st (Friday), reflecting TD Cowen’s forecast for AWS’ explosive growth. Cisco Systems (+1.63%) rose after announcing plans to expand partnership with Nvidia, which is related to providing corporate AI solutions.

Palantir (-3.13%) fell for the fifth consecutive day on news that a reduction in U.S. defense spending could affect its bottom line. IonQ (-4.83%) fell in the wake of a contraction in overall investor sentiment ahead of its earnings announcement. Liggeti Computing (-10.77%) and Quantum Computing (-5.39%) fell. However, SilSQ (+3.28%) is carrying out quantum application specific integrated circuit (Quantum ASIC) projects in various Gyukga, including the U.S., France, and India