Stocks pared gains on Wednesday with tech leading the way lower after President Trump spoke about his tariff plans at a cabinet meeting Wednesday afternoon as investors also braced for Nvidia’s (NVDA) crucial earnings report due out after the bell.
The tech-heavy Nasdaq Composite (^IXIC) pared gains to dip below the flatline after rising as much as 1% earlier in the session after consecutive sharp losses for the index. The benchmark S&P 500 (^GSPC) fell as much as 0.3%, while the Dow Jones Industrial Average (^DJI) led losses, falling as much as 0.6% on Wednesday afternoon.
Bitcoin (BTC-USD), which has been retreating from its post-election highs and trading at its lowest levels since November, also took a leg lower with stocks on Wednesday, losing as much as 3% to fall below $85,000.
The leg lower in stocks and risk assets came after President Trump said tariffs against the EU would include 25% on autos among other goods, while levies against Mexico and Canada will go into effect on April 2.
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Investors are looking to Nvidia’s quarterly results due after the bell to potentially lift stocks more broadly, given the AI bellwether’s history of bullish reactions to earnings.
But Nvidia’s stock has lagged the S&P 500 so far this year, and the chipmaker’s prospects face headwinds from Trump’s tariff threats and export controls. Its shares rose around 2% in afternoon trading after sliding 2.8% on Tuesday.
Earlier in the session, investors had kept a close eye on the narrow passage of Trump’s tax and security measures in the House of Representatives, keeping the $4.5 trillion plan for deep tax cuts alive. Still, investors concerns have been growing about harm to the economy from Trump’s policies, reflected in recent consumer confidence and other data.
In earnings before the bell, Lowe’s (LOW) stock popped after the home improvement retailer posted a profit and revenue beat. General Motors’ (GM) plan to up its dividend by 25% and begin a new $6 billion stock buyback helped lift shares by about 5%.
Elsewhere in corporates, Super Micro Computer (SMCI) stock surged after the data center server maker met a deadline to submit delayed regulatory filings and avoid a Nasdaq delisting.
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Tech stocks pare gains as investors prepare for Nvidia earnings
Tech stocks pared gains on Wednesday afternoon after President Trump referenced tariffs against the European Union during a cabinet meeting.
All eyes were on Nvidia (NVDA) which will report earnings after the bell. Shares of the AI chip giant traded just 2% higher after rising as much as 5% earlier in the session.
EV maker Tesla (TSLA) dropped as much as 3% to hit a session low. Alphabet (GOOGL, GOOG) fell more than 1.5% while iPhone maker Apple (AAPL) also dropped 3% to hit a session low.
On Wednesday afternoon President Trump said tariffs against the EU would amount to 25%, mentioning specifically auto imports, though more details are expected to come out soon.
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Stocks lose momentum as Trump threatens new tariffs on EU
The major gauges lost momentum Wednesday afternoon as President Trump said he was working on imposing new tariffs on imports from the EU.
In a cabinet meeting Wednesday Trump said the tariffs would amount to 25% and would be announced soon. The president said the levies would be applied generally and specifically mentioned car imports.
The tech-heavy Nasdaq Composite (^IXIC) slipped just under the flatline, reversing earlier gains and was on track to add onto two back-to-back losing sessions. The benchmark S&P 500 (^GSPC) lost around 0.2%, while the Dow Jones Industrial Average (^DJI) gave up 0.6%.
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AppLovin shares tumble on short seller reports
AppLovin was a top trending ticker on Yahoo Finance after two short sellers targeted the stock, sending shares down as much as 20% before they recouped some of those losses by mid-afternoon trade.
The short-selling firms Culper Research and Fuzzy Panda Research each published bearish reports regarding the mobile tech company, which had been on a hot streak to kick off the year.
Prior to Wednesday’s steep sell-off, shares had been up over 20% year to date. The initial declines shaved off approximately $32 billion from its market cap.
Wall Street analysts remain bullish on the stock with 21 Buy ratings, 6 Holds, and no Sells, according to Bloomberg data.
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Nvidia set to report earnings after the bell. Here’s what to expect.
Nvidia (NVDA) is set to report earnings after the bell with a lot riding on the results of the AI chipmaker.
Nvidia stock has struggled since the start of the year, but shares rose around 5% in Wednesday afternoon trading.
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Read More: Stocks forfeit gains as Dow, bitcoin lead markets lower with all eyes on Nvidia