Tariff Hope Lifts Nvidia Stock 4% As S&P 500 Turns Positive
Stocks markets opened lower today, with NVDA shares opening 7% down, but have reversed back up now and S&P 500 is higher too.
A Tumultuous Start for Stock Markets and S&P 500
Global stock markets began the week under intense pressure, continuing the sell-off that began last week amid escalating U.S.-China trade tensions and growing fears of a global economic slowdown. Investor sentiment remained fragile after the weekend, leading to bearish gaps at the Monday open.
A&P 500 Chart Daily – The Decline Has Stalled for Now
The Nasdaq Composite, already down more than 20% from its December high, plunged another 10% at the open, deepening its slide into bear market territory. The S&P 500, which had dropped over 8% last week, opened with a 3% gap down and continued lower in early trading. The Dow Jones Industrial Average (DJIA), after falling 7.5% last week, also extended its losses during the U.S. morning session.
Trump Comments Trigger Market Reversal
However, sentiment shifted midday after President Donald Trump signaled a possible softening of the tariff policy. In his statement, Trump mentioned that tariffs could be suspended for three months for most countries—except China, which has already announced retaliatory measures. This indication of flexibility led to a sharp rebound in U.S. equities.
The S&P 500 reversed course and is now trading around 0.4% higher, reflecting renewed optimism that trade tensions may ease, at least temporarily. Market participants reacted swiftly to any signs of a potential truce, highlighting the sensitivity of current market conditions to geopolitical developments.
Nvidia Stock Daily Chart: From Deep Red to Strong Green
A standout performer in today’s turnaround was Nvidia (NVDA). The stock, a key player in the 2024 AI-driven tech rally, opened sharply lower at $87.40, reflecting a 7% gap down due to concerns over increased tariffs on tech products manufactured in China.
This early plunge came after Trump’s morning comments threatened even higher tariffs on Chinese imports, fueling fears that Nvidia—whose supply chain is to some degree intertwined with China—would face higher costs or disruptions.
Yet as speculation about a tariff exemption or delay began circulating on social media and through financial news outlets, Nvidia staged a dramatic reversal. Around 60% of Nvidia’s imports come form Mexico which falls under the USMCA trade agreement and 30% from Taiwan, so Nvidia might not be too affected. The stock surged from its intraday lows to touch $100, marking a 7% intraday gain and a 14% swing from bottom to top.
Outlook for Stocks: Volatility Remains, but Relief Possible
While today’s late-session rally brought some relief to shaken markets, the underlying situation remains highly uncertain. Investors are likely to remain cautious as they await formal policy announcements and potential developments in U.S.-China trade talks.
Nvidia’s dramatic rebound reflects how quickly sentiment can turn in this environment—especially for stocks that are closely tied to global trade dynamics and geopolitical risks. For now, markets are stabilizing, but volatility is expected to persist as headlines continue to shape investor behavior.
S&P 500 Live Chart
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