Live: Nasdaq Composite Falls 2% Premarket | NVIDIA (Nasdaq: NVDA) Down 3%
Key Points
- After the Nasdaq Composite posted a 12.16% gain yesterday, futures are down about 2.3% as of 8:25 a.m. ET.
- Markets are taking a breather after yesterday’s furious gain. While indexes returned to close to where they were trading the day before Trump announced reciprocal tariffs, plenty of uncertainty remains. Individual negotiations with each country must now happen during this 90-day pause and tariff rates still remain elevated with a 10% tariff replacing prior reciprocal tariffs.
- In addition, the trade war with China has now ramped up after Donald Trump issued further tariffs on the country yesterday. How China responds next could be the next major source of market volatility.
- Nvidia made early investors rich, but there is a new class of ‘Next Nvidia Stocks’ that could be even better; learn more here.
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Strong Market Bounce
The Nasdaq bottomed at around 12:30 when it was down more than 6%, but it has now rebounded strongly. As of 2:30 p.m. ET, the index is down 3.6%.
It's Officially a Bloodbath
Yesterday’s gains have now been cut in half, the Nasdaq Composite is down almost 6% shortly after noon. The Dow is down about 1,700 points, or 4%.
Markets Now Down 4%
Yesterday’s massive gains are being chipped away at as the market day carries on. The Nasdaq is now down more than 4% as of 11:20 a.m. ET.
One factor that’s not helping: the White House confirmed that the Chinese tariff rate is now 145%. Rates that high continue to raise the probability of a protracted trade war.
White House Says It Has Deal Offers on the Table From 15 Countries
Economic Policy advisor Kevin Hassett said this morning that the White House has deal offers on the table from 15 countries. Any dealmaking would likely be positive for the market as it would continue to remove uncertainty, but so far markets haven’t reacted much to the news.
The Nasdaq Composite is now down 3.72% as of 10:20 a.m. ET.
What Stocks Are Down the Most Today?
With the Nasdaq down about 2.8%, what stocks are down the most?
In general, the answer is whatever stocks saw the biggest gains yesterday. Carmax (NYSE: KMX) is down 15% following an earnings announcement.
Beyond that many semiconductor stocks that saw huge rallies yesterday are also down. Micron (Nasdaq: MU) is down 7.42% after gaining nearly 20% yesterday, as a notable example.
Markets Are Open
Markets have opened for the day and are down sharply.
The Nasdaq Composite is down 2.8%, S&P 500 down 2.21%, and the Dow Jones has dropped 1.56%. That’s in sharp contrast to last night when Futures were little changed.
Inflation Cooler Than Expected
CPI data was just released by the Bureau of Labor Statistics.
They found that the Consumer Price Index (CPI) rose 2.4% in March, a drop from the prior month. The drop was primarily driven by food and energy prices. We’ll have more analysis on the details but lower inflation rates should help trim premarket losses.
Treasury Check
One of the big factors in Trump’s u-turn on tariffs was surging yields in the 10-Year Treasury market. This morning yields stand at about 4.31%.
That’s about 20 basis points lower than yields peaked at yesterday before Trump’s Truth Social post on the tariff pause.
Yesterday saw one of the most dramatic surges in stock market history. After most indexes opened the day down, a 1:18 p.m. ET post by Donald Trump on Truth Social sent stocks soaring. Eventually, the Nasdaq Composite closed up 12.16%, leaving it within striking distance of where the index traded before Trump announced his reciprocal tariffs on April 2nd.
Yet, the optimism that swept the markets yesterday is taking a pause this morning. Let’s look at where major indexes stand as of 8:25 a.m. ET:
- Nasdaq Futures: Down 2.29%
- S&P Futures: Down 1.83%
- Dow Futures: Down 1.34%
Here are some of the morning’s biggest stories.
Risks Remain
Plenty of reporting is now emerging to detail the thought process behind Trump’s sudden change of direction on tariffs. A few factors seem to be in play:
- The market sell-off clearly impacted Trump’s thinking, but it may have been surging yields on 10-Year Treasuries that finally forced Trump to take action. Reports from various media sources points to Treasury Secretary Scott Bessent becoming worried as Treasury yields jumped more than 50 basis points across a two day period. A key objective of the Trump Administration has been lowering rates to reduce deficits and make lending more affordable across America.
- Influence all came from powerful business leaders. JPMorgan (NYSE: JPM) CEO Jaime Dimon appeared on Fox Business Wednesday morning and appealed for negotiations in an interview that had a major impact on Donald Trump’s thinking.
Yet, despite the 90-day pause on tariffs that were announced yesterday, plenty of risks remain.
For example, tariff rates remain extremely elevated relative to historic levels. Not only does China now face tariffs far in excess of 100%, but countries that saw a pause on reciprocal tariffs still face a 10% tariff during this negotiation window.
In addition, Trump wants to be part of individual negotiations with countries. Its like volatility in the coming months could be driven be negotiation announcements. For example, a deal with Japan would likely send markets higher while any reports that negotiations are reaching a stalemate would lead to further sell-offs.
Stocks on the Move This Morning
Given the above, its not surprising to see markets take a breather after yesterday’s furious rally. In general, stocks that saw the biggest gains yesterday will see losses in excess of the general market today.
- NVIDIA (Nasdaq: NVDA): Is down 3% after jumped nearly 19% yesterday.
- Apple (Nasdaq: AAPL): Is down 3.44% premarket as concerns about a broader trade war with China continue weighing on the stock.
- Microsoft (Nasdaq: MSFT): Is down a more muted 1.49% as it continues to be less impacted by tariff headlines relative to other Magnificent 7 stocks.
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