Tag Archives: US Stocks

Business

Apple’s stock price surged on Wednesday as the market reacted to the latest tariff developments, which can be somewhat perplexing

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President Donald Trump announced that he would implement a 90-day pause on tariffs for most countries with rates over 10%, effective immediately.

However, Apple’s increase in stock value was somewhat confusing; Trump also stated that the tariff rate on China would rise to 125%, intensifying the trade conflict between the two largest economies globally.

As Apple primarily manufactures its iPhones in China through its partner Foxconn, these elevated tariffs could result in higher prices for products like iPhones and MacBooks than previously anticipated.

Apple’s Stock Performance

On Wednesday afternoon, the S&P 500 climbed by 8.2%, while the tech-heavy Nasdaq Composite soared by 9.7%, aiming for its most significant gain since October 13, 2008, according to Dow Jones Market Data.

Apple’s stock shot up by 12% to $193.59, positioning itself for its most considerable percentage gain since November 24, 2008.

Wedbush analyst Dan Ives commented, “This was a much-needed relief for tech stocks, helping pull the market and these stocks back from the brink, yet China still poses the most significant risk factor for Apple and the wider supply chain.”

Trump is encouraging companies to relocate their manufacturing to the United States, using tariffs as a strategy to expedite this shift.

He wrote on Truth Social on Wednesday morning, “This is a GREAT time to move your COMPANY into the United States of America, as Apple and many others are doing in record numbers.”

Nevertheless, it seems improbable that Apple would undergo a complete transformation in its manufacturing process.

BofA Securities analyst Wamsi Mohan noted on Wednesday morning, “Even though Apple could locate labor for iPhone assembly in the U.S., a substantial part of the sub-assemblies would still need to be produced in other countries, assembled in China, and then imported to the U.S.”

He also pointed out that while relocating final assembly to the U.S. might be feasible, transforming the entire iPhone supply chain would be a far more complex challenge that could take several years, if it’s even achievable.

Technology

Notable investor acquires NVDA, noting exceptionally high demand for GPUs

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Renowned investor Brad Gerstner recently informed CNBC that he has purchased shares of Nvidia (NVDA). He attributed this decision to the exceptionally high demand for GPU chips and President Donald Trump’s choice to exclude semiconductors from tariffs.

Gerstner is the founder of Altimeter Capital.

Gerstner’s Reasoning Behind Acquiring NVDA

“The demand for GPUs is unprecedented,” the investor remarked. “We are hearing this from companies like Google (GOOG), Tesla (TSLA), and others,” he further stated.

Gerstner pointed out that with Trump’s exemption of chips from tariffs, it seems likely that semiconductors will continue to avoid tariffs in the future.

“If we were to impose tariffs on the chips that we’ve designed and which are being purchased” by major U.S. companies, including Meta (META) and Microsoft (MSFT), “we would be impairing our own progress,” Gerstner explained. He emphasized that such a move could jeopardize America’s chances of succeeding in the AI competition.

In light of the tariff exemption that chips have received, Gerstner indicated that NVDA will be less affected by tariffs compared to many other technology companies.

Nevertheless, he warned that in the event of a U.S. recession, “even Nvidia may not perform as well.”

While we recognize NVDA’s potential, we firmly believe that AI stocks have a greater likelihood of providing higher returns in a shorter period. One AI stock has appreciated since the start of 2025, whereas popular AI stocks have dropped by about 25%. If you are in search of an AI stock that presents a more promising opportunity than NVDA and is trading at under 5 times its earnings, take a look at our report regarding the most affordable AI stock.

Business

Tariffs Trigger Another Stock Market Collapse—Losses Near $5 Trillion As Dow Dives Another 2,000 Points

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Topline Investors did not experience the recovery they may have anticipated on Thursday following the historic losses, as stocks once again fell significantly while the market processes President Donald Trump’s tariffs, amidst China imposing a 34% retaliatory tariff on U.S. imports.

Thursday marked the steepest daily drop since 2020 for all three major U.S. indices—the Dow Jones Industrial Average (-4%, or 1,680 points on Thursday), the S&P 500 (-5%), and the tech-focused Nasdaq (-6%)—and the situation worsened on Friday.

The Dow dropped 5.1%, or roughly 2,100 points, by early afternoon, extending its two-day decline to around 3,700 points, while both the S&P and Nasdaq fell about 5.5% each on Friday, resulting in a cumulative 10% drop for the S&P and an 11% decrease for the Nasdaq since Trump’s tariff announcement on Wednesday.

All three indices are down at least 10% from their peak values achieved a few months ago, with the Dow and S&P reaching their lowest levels intraday since May, and the Nasdaq hitting its most affordable point since April—officially entering correction territory—and the Nasdaq falling into a bear market as it traded over 20% below its all-time high in December, marking its first bear market since 2022.

Stocks have declined to their lowest points in several months, with both the Dow and S&P reaching their lowest intraday values since May, while the Nasdaq touched its least expensive level since April.

Beyond the effects of the continued negative sentiment stemming from the tariffs of 10% or more on most imports announced on Wednesday, investors also reacted negatively to the retaliatory measures led by China and Trump’s steadfastness, as the president stated on Friday via social media that his “POLICIES WILL NEVER CHANGE.”

The selloff erased more than $4.9 trillion in market capitalization from stocks listed on the S&P, according to data from FactSet, with Apple, Nvidia, and Tesla comprising a combined loss exceeding $1 trillion.

Which Stocks Have Declined The Most Due To Tariffs?

Shares of American companies heavily reliant on China for a significant share of their revenues were especially impacted, with the iPhone maker Apple, coffee giant Starbucks, and Elon Musk’s Tesla each declining by at least 7%. Since Wednesday, the biggest percentage losers among American firms valued at over $100 billion include Citigroup, ConocoPhillips, Boeing, Bank of America, Starbucks, Qualcomm, Morgan Stanley, Goldman Sachs, Advanced Micro Devices, Wells Fargo, and Apple, with shares of each losing 15% or more during the two-day span.

Trump urged Federal Reserve Chairman Jerome Powell to promptly lower interest rates; however, Powell indicated no inclination to do so in a speech on Friday, mentioning it is “too soon” to assess the forthcoming monetary policy decisions. Powell did, however, issue a stark warning about the economic repercussions of tariffs, forecasting that they would lead to “higher inflation and slower growth.”