Tech giants rebound after volatility, Nvidia leads recovery

Technology stocks experienced a recovery on Apr. 8, 2025 after three days of volatility, spurred by speculation regarding potential tariff negotiations by President Donald Trump.

Nvidia led the gains in the “Magnificent Seven” group, increasing by approximately 7%. Meta, Amazon, Tesla, Apple, and Microsoft each rose by at least 4%. Alphabet also saw a rise of about 3%.

This rebound followed a turbulent trading session on Apr. 7, 2025, where speculation about a delay in tariff implementation resulted in sharp market fluctuations.

In the previous session, Alphabet, Meta, Amazon, and Nvidia closed higher. However, Apple, Microsoft, and Tesla posted losses. The “Magnificent Seven” group had recently lost US$1.8 trillion in market value over two trading days.

Semiconductor stocks also saw gains, with the VanEck Semiconductor ETF rising more than 5%, adding to a prior 2% increase.

Advanced Micro Devices, Lam Research, and Micron Technology each rose by around 6%.

In individual stock news, Broadcom surged by 9% after announcing a US$10 billion share buyback plan set to conclude by year-end.

Marvell Technology also rose over 9% after agreeing to sell its automotive ethernet division to Infineon Technologies for US$2.5 billion in cash.

🔗 Source: CNBC

🧠 Food for thought

1️⃣ Tech market volatility follows historical patterns of tariff-induced turbulence

The dramatic swings in technology stocks mirror previous episodes of tariff-induced market volatility, though the current scale is unprecedented.

During the 2018-2019 tariff escalations, tech companies suffered similar disruptions when the Trump administration imposed duties on $200 billion of Chinese goods, particularly affecting components critical for AI and autonomous vehicles 1.

The recent market reaction has been extreme, with trading volume reaching its highest level in nearly two decades as the Magnificent Seven tech stocks lost $1.8 trillion in just two trading sessions before the current rebound.

Goldman Sachs analysis indicates that a sustained implementation of these tariffs could reduce S&P 500 earnings per share by 2-3%, with tech companies particularly vulnerable due to their global supply chains 2.

The effective U.S. tariff rate is now at its highest level since the 1970s, creating a macroeconomic environment that few current investors have experienced before 3.