Nasdaq Declines as Dow Gains Amid Tariff Concerns and Nvidia’s Earnings Reaction

Market Overview

The stock market exhibited mixed performance on Thursday as investors assessed President Trump's renewed tariff threats and the latest corporate earnings results, including Nvidia's forecast-beating performance. The market saw a divergence, with the Dow Jones Industrial Average rising while the Nasdaq Composite declined. The S&P 500 oscillated around the flatline as traders reacted to economic data and shifting investor sentiment.

Trump’s Tariff Announcements and Market Reaction

President Trump’s tariff rhetoric intensified, shaking currency markets and impacting equities globally. On Wednesday night, he announced the possibility of imposing a 25% tariff on European Union imports, particularly targeting automobiles and other goods. Additionally, Trump reaffirmed that tariffs on Canada and Mexico would commence on Tuesday, alongside a 10% tariff on Chinese imports. These policy moves injected volatility into markets, with investors evaluating the potential economic ramifications.

Key Market Reactions:

• The U.S. dollar strengthened, while the euro, Canadian dollar, Mexican peso, and Chinese yuan weakened.

• European auto stocks plunged, with Stellantis (STLA) falling 4% in Milan, reflecting concerns over U.S.-EU trade tensions.

• Shares of Tesla (TSLA) slid further, as the company already faces declining sales in Europe, adding to investor worries about trade headwinds.

• The Nasdaq Composite dipped, with a sell-off in major technology names, while the Dow Jones Industrial Average moved higher, driven by gains in defensive sectors.

Nvidia Earnings Report and Market Impact

Nvidia (NVDA), the AI semiconductor giant, reported robust earnings, surpassing analysts' expectations in both revenue and profit. However, the company reported a narrower profit margin, sparking a decline in its stock price despite the strong results. Investors appeared to take a cautious stance, possibly locking in profits after Nvidia’s extraordinary run over the past year.

Stocks to Watch: Mixed Reactions to Earnings Reports

Earnings season continued to drive stock-specific movements, with several major companies reporting results:

• Snowflake (SNOW) ⬆️ – The software company posted a significant increase in revenue, but its net loss widened. Investors, however, focused on the strong growth trajectory, pushing the stock higher.

• eBay (EBAY) ⬇️ – The online marketplace provided a disappointing revenue forecast, leading to a sell-off.

• Robinhood (HOOD) ⬆️ – Shares rose following a rebound in Bitcoin prices, benefitting other crypto-linked stocks like Coinbase (COIN) and MicroStrategy (MSTR).

• Salesforce (CRM) ⬇️ – Despite rising profits, a weaker revenue outlook sent shares lower.

• Warner Bros. Discovery (WBD) ⬆️ – The company reported a larger-than-expected loss but projected strong subscriber growth in 2025, leading to a stock rebound.

• Norwegian Cruise Line (NCLH) ⬇️ – Shares slipped after the company reported weaker-than-expected earnings, coupled with concerns over potential higher taxes on the cruise industry.

• WPP (WPP) ⬇️ – The U.K.-based advertising firm plunged 15% after a steep revenue decline, citing economic headwinds in North America and China.

Currency Market Movements and Tariff Implications

Investors grappled with uncertainty regarding the enforcement of Trump’s tariff threats, yet the impact on currency markets was immediate:

• The Canadian dollar fell 0.7%, trading at 1.44 to the U.S. dollar.

• The Mexican peso declined 0.2%, now around 20.46 to the U.S. dollar.

• The Chinese yuan weakened in offshore trading, as concerns mounted over U.S.-China trade relations.

Treasury Yields and Economic Data

• Benchmark 10-year Treasury yields hovered around 4.28%, holding steady after a six-day decline that saw yields drop below 4.25% on Wednesday.

• Labor Department data showed higher-than-expected weekly jobless claims, adding to concerns over economic slowdown.

Bitcoin and Cryptocurrency Market Performance

Bitcoin remained relatively stable, trading around $85,000, with moderate gains supporting crypto-related equities. Companies like Robinhood (HOOD) and Coinbase (COIN) benefited from the stabilization in cryptocurrency prices.

Blue Origin’s Space Tourism Expands

Jeff Bezos’ Blue Origin announced its upcoming space-tourism flight, featuring an all-female crew for the first time since the 1960s. Among the passengers are:

• Katy Perry, pop icon

• Gayle King, broadcast journalist

• Lauren Sánchez, Bezos’ partner, who assembled the crew

• Aisha Bowe, former NASA scientist

• Kerianne Flynn, former fashion industry professional

• Amanda Nguyen, research scientist

Blue Origin continues expanding its space tourism initiatives, having previously flown celebrities such as William Shatner and Michael Strahan.

Conclusion: Market Uncertainty Persists Amid Mixed Signals

The market remains in flux as investors juggle multiple factors: Trump’s tariff threats, Nvidia’s earnings impact, economic data, and currency market reactions. While defensive stocks and the Dow Jones outperformed, the Nasdaq struggled under pressure from tech sector weakness. Investors are likely to remain cautious in the short term, closely monitoring tariff developments and upcoming economic data for further market direction.