US Indices continued to see selling pressures in Q1 due to tariff threats, geopolitical concerns, and fear of a US recession. However, Q2 could very well see a rebound if history tells us anything.
Thanks to a combination of factors, such as weak economic data, tariff concerns, higher-than-expected inflation, and fears about AI capital expenditures, the stock market has been beaten down in recent months. And while the overall market has taken a hit, the tech-heavy Nasdaq has been the worst performer of the major indices, with the Nasdaq Composite nearly 15% below its recent high.
US indices retreat on tariff worries as VIX jumps to 22.44. Nvidia drops 3.9%, Microsoft falls 2.2%, while defensive sectors provide limited market support.
The stock market continues to suffer on tariff-related uncertainty but the major indexes are off their worst levels of the morning.
Ark Invest CEO Cathie Wood and Berkshire Hathaway CEO Warren Buffett couldn't be any more different in their investment approaches.
On Jan. 6, shares of semiconductor powerhouse Nvidia (NVDA -1.51%) closed at an all-time high of $149.43. At the time, the company's market capitalization hovered around $3.7 trillion.
Nasdaq tech stocks, led by Nvidia, Tesla and Palantir, are set to lead a deeper US stock market sell-off on Monday, the last trading day of the quarter, ahead of the start of Donald Trump's reciprocal tariffs later in the week. On the futures market, the Nasdaq 100 was down 1.4%, while S&P 500 futures were 1.05% lower and those for the Dow Jones fell 0.65%.
Bearish sentiment, tariff clarity, and April seasonality could fuel a Nasdaq 100 rebound. Key tech stocks like Apple and Meta may benefit from rebalancing.
The Nasdaq-100 is composed of the 100 largest non-financial companies listed on the Nasdaq Composite (^IXIC -2.70%). For those who have followed the market in recent years, it should come as no surprise that this tech-heavy index, which is full of some of the largest artificial intelligence companies in the world, has been a good long-term investment.
The stock market has had a shaky start to the year. The tech-centric Nasdaq Composite (^IXIC -2.70%) is down 7% year to date at the time of this writing.
The Nasdaq Composite (^IXIC -2.70%) is down more than 7% year to date at the time of writing. Sudden dips in the stock market are not fun, but they are common and can help you buy shares of quality growth stocks at better prices.
After posting double-digit gains during both 2023 and 2024, the S&P 500 and Nasdaq Composite have gotten off to an underwhelming start this year. As of this writing, the S&P 500 is down 3% on the year while the tech-heavy Nasdaq index has fallen by a more pronounced 7%.