Nvidia’s stock took a significant hit, falling 8.5% and wiping out $273 billion from its market value in a single day. This sharp decline pushed the company out of the exclusive $3 trillion market cap club, leaving Apple the only one at that level.
Despite Nvidia reporting strong earnings, concerns over AI competition, export restrictions, and weakening growth weighed heavily on investors. Meanwhile, former U.S. President Donald Trump confirmed that his administration will enforce tariffs on Canada and Mexico while also targeting China and the European Union with additional import taxes.
The stock market faces heavy losses
Major U.S. stock indexes saw significant declines as investors reacted to Nvidia’s sharp drop and Trump’s tariff announcements. The S&P 500 lost 1.59% to close at 5,861.57, while the Nasdaq dropped 2.78% to 18,544.42. The Dow Jones also declined by 193.62 points, settling at 43,239.50. Nvidia’s stock has fallen 10% since the start of 2025, with concerns growing over the impact of potential tariffs on Taiwanese semiconductor imports.
Heat map showing different tech stocks
Unemployment claims also surged, with 242,000 Americans filing for benefits last week, up 22,000 from the previous period. This marks the highest number of jobless claims since October, signaling potential weakness in the labor market. Corporate layoffs continue to rise, with major tech firms like Google, Meta, and Microsoft announcing job cuts.
Economic concerns grow amid tariff threats
Trump’s decision to impose new tariffs raises fears of higher import costs and slower economic growth. He cited concerns over drug trafficking from Canada and Mexico as the reason for these trade measures. The new tariffs are set to take effect on March 4, with an additional 10% tax on Chinese imports and a reciprocal tariff increase scheduled for April 2.
Rising trade tensions could further impact Nvidia, as most of its AI chips are manufactured in Taiwan. Trump has previously criticized Taiwan’s role in the semiconductor industry, and any tariffs on Taiwanese chip imports could deepen Nvidia’s stock losses. Meanwhile, China’s offshore yuan saw a slight increase of 0.1%, but Chinese stocks in Hong Kong dropped by 1% as investors prepared for potential countermeasures from Beijing.
Bitcoin drops to a three-month low
The value of Bitcoin experienced a severe downturn which caused it to drop 3.45% to a new price of $80,500. The price decline reached 25% since Bitcoin reached its highest value in December. During his presidential campaign, Trump strongly supported cryptocurrency, yet capital withdrawals from digital assets increased once market fears developed about broader market declines.
The cryptocurrency market has seen its total value shrink from $3.7 trillion to $2.8 trillion in just over a month. Bitcoin’s strong correlation with the Nasdaq 100 means it behaves more like a tech stock than a hedge against uncertainty. Investors are moving funds into the U.S. dollar, which has strengthened as market volatility increases.
Bitcoin & Nasdaq. Source: Topdowncharts.com
Bitcoin ETFs have seen their largest withdrawal amount in history, totaling $2.1 billion, during the past six days. On Thursday, investors removed $1 billion, which became the biggest single-day withdrawal from a Bitcoin ETF in history. After Trump’s electoral victory, the cryptocurrency market spiked, but the current market decline indicates increasing market doubt stemming from rising trade tensions.