Why Nvidia Stock Is Sinking Today
Nvidia (NASDAQ: NVDA) stock is falling Thursday amid big sell-offs for the broader market. The company's share price was down 6.1% as of 2 p.m. ET. Meanwhile, the S 500 index was down 4.1%, and the Nasdaq Composite index was down 5.2%.
Stocks are sinking today following the Trump administration's announcement of its new tariff policy, and tech stocks including Nvidia are being hit particularly hard. The artificial intelligence (AI) leader's share price is also taking a hit after receiving an analyst ratings downgrade.
The Trump administration held its "Liberation Day" event yesterday and outlined a series of sweeping new tariffs that will be implemented this month. A 10% tariff on all goods imported from foreign countries will go into effect on April 5, and a separate and additional set of reciprocal tariffs will then be implemented on April 9. It would be an understatement to say that investors aren't thrilled with the new import taxes. The semiconductor specialist relies on components and manufacturing services from companies outside the U.S., and the potential for trade-war dynamics to continue escalating means that the business could face tariff headwinds from retaliatory actions taken by other nations.
Source Fool.com
