Guests including Mark Zuckerberg, Lauren Sanchez, Jeff Bezos, Sundar Pichai and Elon Musk attend the Inauguration of Donald J. Trump in the U.S. Capitol Rotunda on January 20, 2025 in Washington, DC. Donald Trump takes office for his second term as the 47th president of the United States.
Julia Demaree Nikhinson | Getty Images
So much for the Trump bump.
After plunging 2.6% on Thursday, the Nasdaq has wiped out all of its post-election gains and is on pace for its worst week since September, as investors fret over tariffs, weaker-than-expected employment numbers and a potential cooling in the artificial intelligence market.
The selloff marks a big reversal for tech, especially after the industry’s top executives went out of their way to show their support for Donald Trump following his election victory in November, traveling to see him at his Mar-a-Lago resort in Florida and publicly announcing their contributions to his inauguration. Many of the industry’s biggest names, including Apple’s Tim Cook, Meta’s Mark Zuckerberg, Amazon founder Jeff Bezos and Alphabet CEO Sundar Pichai attended the inauguration in Washington, D.C., in January.
Those companies all contributed to the tech rally over the past two years. The Nasdaq jumped 43% in 2023 and 29% last year, driven by gains in Nvidia, Meta and other companies that are viewed as major beneficiaries of the AI boom.
Aaron Dunn, Morgan Stanley Investment Management co-head of value equity, told CNBC’s “The Exchange” on Thursday that uncertainty surrounding Trump’s economic policies coupled with a broad shift away from risk is at the heart of the move.
“We really want to focus on businesses that we would call all-weather businesses in the market,” said Dunn. He added that the market is seeing the unwinding of the high-risk trade, with a rotation into companies that can handle “whatever the volatility is from the administration, it’s going to be daily.”
Investors are particularly concerned about the increased costs of goods for businesses that will likely result from tariffs, and higher consumer prices that will follow, as well as retaliatory tariffs that will make exports more difficult.
At midnight Tuesday, 25% tariffs on imports from America’s top two trading partners, Canada and Mexico, went into effect, as did an additional 10% tariff on Chinese imports. Tariffs on Canadian energy, at a rate of 10%, also began at midnight Tuesday. Though Trump subsequently issued temporary tariff exemptions for a wide range of goods coming from Canada and Mexico, the market continued its downward slide.
Among tech’s megacap companies, the worst performer this year is Tesla, which is down 35% after dropping almost 6% on Thursday. The automaker’s slide is particularly notable considering CEO Elon Musk’s central position in the second Trump administration.
February, Musk’s first full month in the White House, marked Tesla’s worst month on the stock market since 2022. The stock is trading at its lowest since Election Day, Nov. 5, and is 45% below its record reached in December.
Nvidia has slid 18% this year, including a more than 11% decline this week, and is trading at its lowest since September. The chipmaker, which has powered much of the AI market with its graphics processing units, counts on major trade partners across the globe.
The company’s processors are mostly made in Taiwan, but some of its sophisticated systems and full computers surrounding the chips are manufactured in other regions, including Mexico and the U.S.
“Tariffs at this point, it’s an unknown until we understand further what the U.S. government’s plan is,” Nvidia finance chief Colette Kress told investors on the company’s earnings call late last month.
Chipmaker Broadcom, which more than doubled in value last year due to soaring demand for its AI systems, has fallen 22% this year. Broadcom shares rallied in extended trading on Thursday after earnings.
Marvell Technology led Thursday’s drop in chipmakers, plunging 20% after guidance fell short of some elevated buyside estimates. The stock is now down 35% for the year.
In addition to tariffs and trade, Wall Street is worried about jobs. Private sector job creation slowed to a crawl in February, fueling concerns of an economic slowdown, payrolls processing firm ADP reported Wednesday. Companies added just 77,000 new workers for the month, below the 148,000 Dow Jones consensus estimate, according to seasonally adjusted figures from ADP.
Without a huge rally on Friday, the Nasdaq will finish lower for its third straight week and fifth week in the past six.
Inside a secretive set of buildings in Santa Barbara, California, scientists at Alphabet are working on one of the company’s most ambitious bets yet. They’re attempting to develop the world’s most advanced quantum computers.
“In the future, quantum and AI, they could really complement each other back and forth,” said Julian Kelly, director of hardware at Google Quantum AI.
Google has been viewed by many as late to the generative AI boom, because OpenAI broke into the mainstream first with ChatGPT in late 2022.
Late last year, Google made clear that it wouldn’t be caught on the backfoot again. The company unveiled a breakthrough quantum computing chip called Willow, which it says can solve a benchmark problem unimaginably faster than what’s possible with a classical computer, and demonstrated that adding more quantum bits to the chip reduced errors exponentially.
“That’s a milestone for the field,” said John Preskill, director of the Caltech Institute for Quantum Information and Matter. “We’ve been wanting to see that for quite a while.”
Willow may now give Google a chance to take the lead in the next technological era. It also could be a way to turn research into a commercial opportunity, especially as AI hits a data wall. Leading AI models are running out of high-quality data to train on after already scraping much of the data on the internet.
“One of the potential applications that you can think of for a quantum computer is generating new and novel data,” said Kelly.
He uses the example of AlphaFold, an AI model developed by Google DeepMind that helps scientists study protein structures. Its creators won the 2024 Nobel Prize in Chemistry.
“[AlphaFold] trains on data that’s informed by quantum mechanics, but that’s actually not that common,” said Kelly. “So a thing that a quantum computer could do is generate data that AI could then be trained on in order to give it a little more information about how quantum mechanics works.”
Kelly has said that he believes Google is only about five years away from a breakout, practical application that can only be solved on a quantum computer. But for Google to win the next big platform shift, it would have to turn a breakthrough into a business.
An attendee wearing a Super Mario costume uses a Nintendo Switch 2 game console while playing a video game during the Nintendo Switch 2 Experience at the ExCeL London international exhibition and convention centre in London, Britain, April 11, 2025.
Isabel Infantes | Reuters
Nintendo on Friday announced that retail preorder for its Nintendo Switch 2 gaming system will begin on April 24 starting at $449.99.
Preorders for the hotly anticipated console were initially slated for April 9, but Nintendo delayed the date to assess the impact of the far-reaching, aggressive “reciprocal” tariffs that President Donald Trump announced earlier this month.
Most electronics companies, including Nintendo, manufacture their products in Asia. Nintendo’s Switch 1 consoles were made in China and Vietnam, Reuters reported in 2019. Trump has imposed a 145% tariff rate on China and a 10% rate on Vietnam. The latter is down from 46%, after he instituted a 90-day pause to allow for negotiations.
Nintendo said Friday that the Switch 2 will cost $449.99 in the U.S., which is the same price the company first announced on April 2.
“We apologize for the retail pre-order delay, and hope this reduces some of the uncertainty our consumers may be experiencing,” Nintendo said in a statement. “We thank our customers for their patience, and we share their excitement to experience Nintendo Switch 2 starting June 5, 2025.”
The Nintendo Switch 2 and “Mario Kart World“ bundle will cost $499.99, the digital version “Mario Kart World” will cost $79.99 and the digital version of “Donkey Kong Bananza” will cost $69.99, Nintendo said. All of those prices remain unchanged from the company’s initial announcement.
However, accessories for the Nintendo Switch 2 will “experience price adjustments,” the company said, and other future changes in costs are possible for “any Nintendo product.”
It will cost gamers $10 more to by the dock set, $1 more to buy the controller strap and $5 more to buy most other accessories, for instance.
An employee walks past a quilt displaying Etsy Inc. signage at the company’s headquarters in the Brooklyn.
Victor J. Blue/Bloomberg via Getty Images
Etsy is trying to make it easier for shoppers to purchase products from local merchants and avoid the extra cost of imports as President Donald Trump’s sweeping tariffs raise concerns about soaring prices.
In a post to Etsy’s website on Thursday, CEO Josh Silverman said the company is “surfacing new ways for buyers to discover businesses in their countries” via shopping pages and by featuring local sellers on its website and app.
“While we continue to nurture and enable cross-border trade on Etsy, we understand that people are increasingly interested in shopping domestically,” Silverman said.
Etsy operates an online marketplace that connects buyers and sellers with mostly artisanal and handcrafted goods. The site, which had 5.6 million active sellers as of the end of December, competes with e-commerce juggernaut Amazon, as well as newer entrants that have ties to China like Temu, Shein and TikTok Shop.
By highlighting local sellers, Etsy could relieve some shoppers from having to pay higher prices induced by President Trump’s widespread tariffs on trade partners. Trump has imposed tariffs on most foreign countries, with China facing a rate of 145%, and other nations facing 10% rates after he instituted a 90-day pause to allow for negotiations. Trump also signed an executive order that will end the de minimis provision, a loophole for low-value shipments often used by online businesses, on May 2.
Temu and Shein have already announced they plan to raise prices late next week in response to the tariffs. Sellers on Amazon’s third-party marketplace, many of whom source their products from China, have said they’re considering raising prices.
Silverman said Etsy has provided guidance for its sellers to help them “run their businesses with as little disruption as possible” in the wake of tariffs and changes to the de minimis exemption.
Before Trump’s “Liberation Day” tariffs took effect, Silverman said on the company’s fourth-quarter earnings call in late February that he expects Etsy to benefit from the tariffs and de minimis restrictions because it “has much less dependence on products coming in from China.”
“We’re doing whatever work we can do to anticipate and prepare for come what may,” Silverman said at the time. “In general, though, I think Etsy will be more resilient than many of our competitors in these situations.”
Still, American shoppers may face higher prices on Etsy as U.S. businesses that source their products or components from China pass some of those costs on to consumers.
Etsy shares are down 17% this year, slightly more than the Nasdaq.