A surprisingly positive inflation report didn’t manage to halt the downward trend of the Dow Jones Industrial Average and other key stock indexes on Thursday. This decline came on the heels of significant market gains the previous day, spurred by President Donald Trump’s announcement of a 90-day pause on most tariffs.
Among the notable losers were tech giants Nvidia and Tesla, paired with Taiwan Semiconductor Manufacturing Company (TSMC), a key partner of Nvidia.
After the market opened, the Dow plummeted by more than 900 points — a drop of 2.3%. The S&P 500 felt the heat too, declining by 2.6%, while the tech-heavy Nasdaq composite saw an even sharper drop of 3%.
In terms of yields, the 10-year Treasury note saw a slight decrease to 4.33% early on Thursday, and oil prices continued their dip, hovering around $60.55 per barrel for West Texas Intermediate futures.
The Invesco QQQ Trust (QQQ) dropped 3%, and the SPDR S&P 500 ETF (SPY) fell by 3.5%. Tesla’s stock decreased by 5% in the morning, nearly undoing a substantial 22% increase from the day prior, leaving it about 45% down from its all-time high of 488.54, which it reached on December 18. Wall Street reacted with caution, cutting price targets for Tesla from leading brokerages like Goldman Sachs and UBS, citing ongoing tariff uncertainties affecting the electric-vehicle sector.
Nvidia’s stock declined by 4.4%, putting a dent in its impressive nearly 19% rebound from heavy losses experienced earlier in the week. TSMC reported impressive first-quarter sales, boasting a 42% year-over-year increase, fueled in part by customer stockpiling ahead of Trump’s tariff plans. Despite this, TSMC’s shares fell by 2%.
Midweek, Trump announced a strategic 90-day pause in tariffs for “non-retaliating countries.” However, a baseline tariff of 10% remains on most countries. Meanwhile, the situation remains tense with China, as Trump mentioned a steep hike in tariffs on Chinese imports.
On the economic front, the Labor Department reported a 0.1% decrease in the consumer price index for March, with a 2.4% year-over-year increase—better than expected by economists. Jobless claims also saw a slight increase to 223,000, indicating mixed signals about the labor market.
Earnings reports continued to make waves in the market, with CarMax stock tanking by 12% and Constellation Brands’ shares falling 4%.
Despite the market turmoil, some stocks are catching investors’ attention. Notable companies to watch include Ollie’s Bargain Outlet, Spotify, and TJX. Among tech giants, Apple, Amazon, and Microsoft are making significant moves.
On the positive side, UnitedHealth showed resilience, climbing further above its buy point, while both Spotify and TJX are attempting to break through key resistance levels.
Investors are advised to tread carefully as the market exhibits high volatility, with stock exposure recommendations currently suggesting 0% to 20%. As the situation continues to evolve, savvy investors will need to stay informed about market trends and company performances to make strategic decisions.
