Nasdaq plummeted due to tariffs and tech stock fears, presenting buying opportunities for investors.

From NASDAQ: 2025-04-07 13:00:00

President Donald Trump implemented a two-step tariff plan on April 2, starting with a 10% baseline tariff on imports. China retaliated, causing the Nasdaq Composite to plummet by 5.8% on April 4, with a weekly loss of 8.6%. Tech stocks like Apple, NVIDIA, and Tesla were hit hard, driven by fears of a global trade war and oversupply concerns in AI investments.

Investor jitters intensified with the emergence of DeepSeek, a Chinese AI startup offering cost-efficient AI models. Concerns about oversupply in AI infrastructure were raised when Alibaba’s co-founder warned of outstripping demand. Despite cancellations of data center projects by Microsoft, tech giants like Microsoft, Alphabet, Amazon, and Meta remain committed to over $300 billion in capital expenditures.

Although the Nasdaq 100 faces valuation concerns, the recent selloff presents buying opportunities for investors. The Nasdaq-100-based ETF Invesco QQQ Trust, Series 1, shows a bullish signal with its 50-day moving average rising above the 200-day moving average. Despite uncertainties, investors with a strong risk appetite may consider ETFs like QQQ, QQQM, and QQQE for potential gains in the tech sector.



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