US Stocks Drop, Nasdaq Falls 2.64%, Nvidia Loses $265B!
On Monday, US stock markets closed lower across all major indices. The Dow Jones Industrial Average dropped by 1.48%, the Nasdaq declined by 2.64%, and the S&P 500 fell by 1.76%.
Tech stocks experienced significant losses, with Nvidia falling over 8%, losing $265 billion in market value in a single day. Broadcom dropped more than 6%, Amazon fell over 3%, and Tesla, Google, and Microsoft each lost more than 2%.
In the semiconductor sector, Taiwan Semiconductor Manufacturing Company (TSMC) saw a 4.19% decrease in its ADR, while AMD dropped 1.63%. Berkshire Hathaway B shares, led by Warren Buffett, saw a 0.73% decline, retreating from their record closing price of $513.83. However, Eli Lilly and Company saw a slight gain of 0.99%.
AI-related stocks also faced losses, with Airship AI plunging 21.58%, Nebius Group down by 13.51%, Jet.AI down 10.45%, Tempus AI dropping 9.34%, and Spectral AI falling 8.6%. On the other hand, Adobe rose by 0.49%, Lumen Technologies increased by 2.05%, AppLovin gained 3.56%, and Palladyne AI surged by 6.8%.
The semiconductor, blockchain, and computer hardware sectors were hit hardest, with companies like Super Micro Computer dropping 13%, Dell Technologies falling over 7%, Bit Digital losing more than 6%, Intel and Coinbase both declining over 4%, and Micron Technologies dropping over 3%. Qualcomm and KLA Corporation also saw losses exceeding 2%.
Popular Chinese stocks were also impacted, with the Nasdaq Golden Dragon China Index falling 2.98%. WeRide Inc. dropped more than 11%, Li Auto Inc. lost over 10%, NIO and Kingsoft Cloud Holdings Ltd (KC) each fell more than 8%, Zeekr dropped over 6%, XPeng Motors lost more than 5%, and JD.com decreased nearly 4%.
In political news, on March 3, US President Trump announced that a 25% tariff on goods from Mexico and Canada would take effect on March 4, and reciprocal tariffs would be implemented on April 2. Trump emphasized there was no room for negotiation on the tariffs and also mentioned potential free trade agreements with Argentina. This tariff escalation adds further strain to the already complex global economic recovery, creating negative impacts on financial markets. For the global supply chain, the tariffs disrupt regional trade and logistics strategies.
In the cryptocurrency market, Ethereum saw a significant drop of nearly 16%, now trading at $2,137.66 per coin. Bitcoin also experienced a sharp decline of 8.2%, now valued at $86,265.5 per coin.
The volatility index, VIX, surged by 20%, marking its highest level since December 20 of the previous year.
In the commodities market, COMEX gold futures rose by 2.0%, reaching $2,905.7 per ounce. Meanwhile, WTI crude oil futures settled at $68.37 per barrel, down by 1.99%, and Brent crude oil futures closed at $71.62 per barrel, marking a 1.63% decrease.
