US Tech Stocks Hit by Sell-off: NVIDIA, Apple, Tesla shares plummet

Taiwan • Business • 04/16 12:50
US Tech Stocks Hit by Sell-off: NVIDIA, Apple, Tesla shares plummet

In April of 2025, the U.S. tech stock market experienced significant turmoil due to new U.S. restrictions on chip exports to China, high tariffs imposed by the Trump administration, and fears of an economic recession. Investor confidence was shaken, resulting in a massive outflow of funds. The stock prices of tech giants like NVIDIA, Apple, and Tesla plummeted, which dragged down the overall market. U.S. equity funds experienced a $6 billion outflow in a single month as funds shifted towards safe-haven assets such as gold. This event set off a chain reaction in global stock markets, causing simultaneous declines in Asian and European markets, and the three major U.S. indices suffered significant losses.

Key Updates

04/16 21:48

Federal Reserve Chair Powell warns: the Trump administration's tariff policy may result in inflation and economic growth difficulties

On April 16, 2025, Federal Reserve Chairman Jerome Powell warned about the Trump administration's high tariff policy at the Chicago Economic Club, stating that it could lead to rising inflation and slowing economic growth, challenging the Fed's goals of maintaining price stability and promoting employment. Powell pointed out that if both inflation and unemployment rates rise simultaneously, the Fed will face difficult policy choices and may need to choose between raising and lowering interest rates. These remarks led to a drop in U.S. stocks, as the market expressed concerns over policy uncertainty.

04/16 18:21

Global Tariff Storm: Trade Alliance Expands in the European Market, Indian Stock Market Stays Strong, Taiwanese Steel Mills Face Pressure, Bank of Canada Takes a Wait-and-See Approach

In April 2025, President Trump of the United States reinstated reciprocal tariffs, leading to global market turbulence. BizLink-KY from Taiwan expanded its presence in the European market to mitigate risk, while India's stock market continued to show positive returns thanks to strong fundamentals and minimal exposure to the U.S. Major Taiwanese stainless steel manufacturers, Yieh United Steel and Tang Eng, faced pressure due to fluctuations in raw material prices and a sudden drop in demand. The Bank of Canada halted interest rate cuts amid an uncertain trade environment, adopting a dual-scenario forecasting model to manage economic impacts.

04/16 15:48

TSMC's earnings call presents a positive outlook, while ASML's orders drop by 45%, leading to uncertainty in the semiconductor market.

TSMC will hold an investor conference on April 17, with the market's attention on its operational outlook for 2025. Despite geopolitical and tariff pressures, TSMC's first-quarter revenue increased by 42% compared to the same period last year, with a gross margin of 57.3%. At the same time, ASML saw a 45% drop in new orders in the first quarter, indicating a conservative approach to equipment investment. In anticipation of potential U.S. tariffs, several major tech companies have increased their orders with TSMC ahead of time. Taiwan's equipment spending has dropped by 16%, reflecting a slowdown in investments for new capacity.

04/16 14:51

China Import and Export Fair Opens: Chinese Exporters Seek New Markets Amid Pressure from 145% US Tariffs

On April 15, 2025, the 137th Canton Fair opened in Guangzhou, facing the challenge of a 145% tariff imposed by the United States on Chinese products. Chinese exporters stated they are facing a survival crisis, with some companies halting shipments to the U.S., while others are shifting focus to Southeast Asian and European markets. Despite the bustling crowds at the exhibition, the tariff pressure has already altered the strategies of foreign trade companies. Local governments and trade platforms are offering support, and some companies are contemplating relocating production lines to Southeast Asia, but they are encountering new tariff challenges.

04/16 14:20

Singapore establishes an economic resilience task force to address the US-China tariff war; the President dissolves Parliament to initiate May elections; policies at the Hainan Free Trade Port aim to reduce business costs.

In April 2025, Singapore established the "Economic Resilience Taskforce" led by Deputy Prime Minister Lawrence Wong to tackle the effects of the US-China trade war. Meanwhile, Singapore's President Tharman dissolved Parliament on April 15, announcing a general election to be held on May 3. This is the first time Prime Minister Lawrence Wong is leading the People's Action Party in an election. Meanwhile, China's Hainan Free Trade Port is reducing corporate costs through tax incentives to attract businesses by focusing on changes in international trade.

04/16 12:50

US Tech Stocks Hit by Sell-off: NVIDIA, Apple, Tesla shares plummet

In April of 2025, the U.S. tech stock market experienced significant turmoil due to new U.S. restrictions on chip exports to China, high tariffs imposed by the Trump administration, and fears of an economic recession. Investor confidence was shaken, resulting in a massive outflow of funds. The stock prices of tech giants like NVIDIA, Apple, and Tesla plummeted, which dragged down the overall market. U.S. equity funds experienced a $6 billion outflow in a single month as funds shifted towards safe-haven assets such as gold. This event set off a chain reaction in global stock markets, causing simultaneous declines in Asian and European markets, and the three major U.S. indices suffered significant losses.

04/16 11:21

To avoid U.S. tariffs, Apple plans to air freight $2 billion worth of iPhones from India to the U.S. in March 2025, setting a new record for a single month.

In March of 2025, Apple Inc. airlifted nearly $2 billion worth of iPhones from India to the United States in response to the high tariff policy soon to be implemented by President Trump of the United States, setting a new monthly export record. Foxconn and Tata Electronics led this operation, using at least six cargo planes to transport about 600 tons, equivalent to 1.5 million iPhones, from Chennai Airport in India to multiple cities across the United States. This action highlights the flexibility of Apple's supply chain and underscores India's crucial role in its manufacturing network.

04/16 10:54

U.S. AI Chip Export Restrictions Cause Turmoil in Asian Markets: Korean Stocks Plummet, Nikkei Drops, Gold ETFs Hit Record Highs

The U.S. government has imposed export controls on AI chips like Nvidia H20 to China, causing fluctuations in the Asian market. South Korea's KOSPI index fell by 1.21%, with stock prices of Samsung Electronics and SK Hynix dropping; Japanese semiconductor stocks plummeted, and the Nikkei 225 index fell by 347 points. The Japanese yen appreciated by 0.59% against the U.S. dollar, and gold ETFs reached their second-highest price ever due to increased demand for safe-haven assets. South Korea and the U.S. are set to begin trade tariff negotiations, with South Korea considering increasing imports from the U.S. and boosting production within the U.S. to reduce its trade surplus.

04/16 10:54

Trump's economic policy is causing financial pressure for U.S. retirees: Experts recommend using savings cautiously

The Trump administration's reignition of the tariff war and push for tax reform has put financial strain on American retirees. On April 2, 2025, Trump announced new tariffs, leading to a sharp decline in the U.S. stock market, impacting 401(k) and IRA accounts. The ongoing tax reform could potentially reduce social welfare benefits, affecting low- and middle-income groups. Confidence in U.S. assets among global retirement funds is shaken, leading to divestment actions that intensify economic pressure. Experts recommend a steady approach to market fluctuations, avoiding panic-driven actions, and adopting a diversified asset allocation strategy to balance risks and returns.

04/16 03:20

China's Suspension of Receiving Boeing Aircraft Has Limited Impact: Taiwan's Aerospace Supply Chain is Viewed Favorably

In April 2025, the Chinese government ordered domestic airlines to suspend receiving Boeing aircraft and stop purchasing aircraft parts from American companies as a countermeasure against the 145% tariff imposed by the United States. Since the Chinese market accounts for only 2.06% of Boeing's orders, the impact is limited. Taiwanese aerospace supply chain companies such as Evergreen Aviation, Asia Pacific Aerospace, and Fengda Technology are gaining favor due to the recovery in global demand, as their stock prices rise, indicating market confidence in their growth potential.

Shift in Investor Sentiment: From Tech Stocks to Safe-Haven Assets

According to the Bank of America's Global Fund Manager Survey released on April 15, investor confidence in the U.S. economy and stock market has significantly declined. The report indicates that global investors' allocation to U.S. stocks has experienced the largest two-month decline on record, bond holdings have reached a new high, and stock allocations have fallen to their lowest level since July 2023. In the survey, 73% of respondents believe that the notion of "U.S. economic exceptionalism" has peaked, and 82% expect the global economy to weaken further, marking a 30-year high.

At the same time, "going long on gold" has, for the first time since March 2023, replaced "going long on the Magnificent Seven (Mag 7)" as the most popular investment strategy, indicating a rise in market risk aversion. Investors have also significantly increased their holdings in utilities, healthcare, and consumer staples stocks, with the allocation levels of these defensive assets reaching their highest since the 2008 financial crisis.

Divestment Data Reveals: $6 Billion Outflow from U.S. Stock Funds in a Month

According to statistics from the MPF advisory firm GUM, the "U.S. Stock Fund" saw a net outflow of $6 billion in March 2025, making it the asset class with the largest net outflow so far this year. GUM points out that this wave of divestment is mainly influenced by the overvaluation of U.S. stocks and uncertainties in U.S. tariff policies. Meanwhile, there has been a substantial inflow into "Conservative Funds" and "Guaranteed Funds," which together have attracted over $11 billion year-to-date, indicating a preference for conservative hedging among investors.

Tech Giants Hit: NVIDIA, Apple, Tesla Stocks Plummet

The U.S. government has imposed export restrictions on NVIDIA's next-generation H20 chips, prohibiting their sale to China without permission. NVIDIA stated in its financial report that it will recognize a $5.5 billion loss as a result. Following the news, NVIDIA's stock price plummeted over 6% in after-hours trading, although it closed up 1.35% on the day, market confidence was clearly shaken.

Apple was not spared either. According to Yahoo Finance, since Trump announced a new round of tariff policies, Apple's market capitalization has decreased by as much as $300 billion. Tesla, facing uncertainties in the Chinese market and supply chain disruptions, has suspended some imported car parts from China, leading to a noticeable decline in its stock price.

ETF Market Simultaneously Declines: 11 Tech ETFs Post Losses

Eleven ETFs closely linked to NVIDIA, including Fubon Future Car (00895), Cathay Smart Electric Vehicle (00893), and Uni-President FANG+ (00757), all posted losses after the announcement of U.S. export restrictions. Among them, Mega International Semiconductor (00911), Cathay Digital Payment (00909), and Fubon Metaverse (00903) fell by more than 2%, becoming the hardest hit. These ETFs are mostly concentrated in AI and semiconductor stocks, making them particularly vulnerable to policy risks.

International Capital Flows: U.S. Bonds and Dollar Sold Off, Gold Becomes New Safe Haven

According to Invesco Asia-Pacific strategist Zhao Yaoting, the U.S. bond market has recently undergone significant volatility, mainly due to large-scale sell-offs by foreign investors. The yield on the U.S. 10-year Treasury surged to 4.49% on April 11, marking the largest weekly increase since 2001. The dollar index also fell below the 100 mark, hitting a three-year low.

Meanwhile, gold prices soared, with the main futures contract in New York reaching $3,263 per ounce, a historical high. Analysts point out that gold, as a "stateless asset," becomes a safe haven for capital during times of heightened political and economic uncertainty.

Global Stock Market Chain Reaction: Asian Markets Simultaneously Decline

The turmoil in U.S. tech stocks has also affected global markets. The Nikkei 225 index fell 1%, the South Korean KOSPI index dropped 1.2%, and Taiwan's weighted index also declined. TSMC's stock price fell 2.5%, while Samsung and SK Hynix both dropped over 3%. In the European market, ASML's stock price fell over 6% due to lower-than-expected orders, and the Stoxx Europe 600 index fell by about 1%.

U.S. Stock Market Performance: Major Indices Plummet

Driven by the plunge in NVIDIA and other tech stocks, all three major U.S. indices fell. The S&P 500 index dropped over 1.4%, the Dow Jones Industrial Average fell more than 300 points (about 0.8%), and the tech-heavy Nasdaq index declined by 2.3%. This represents one of the most significant single-day declines since 2020.

References

People Also Ask...

faq

What's the main reason for this recent drop in U.S. tech stocks?

faq

What insights does the recent wave of divestment in U.S. tech stocks provide for future investment strategies?

faq

With the plunge in U.S. tech stocks and the recent wave of divestment, is this going to impact our investment strategy?