US stocks dropped on Wednesday as investors were rattled by renewed concerns about trade wars.
Nvidia’s (NVDA), which fell more than 6%, and Tesla’s (TSLA), which tumbled 5.5%, led the Nasdaq composite losses.
The Dow Jones Industrial Average dropped 119 points (0.3%), while the S&P 500 fell 1.2%.
After the White House said President Donald Trump will unveil new auto import duties at a news conference, investor sentiment declined. Fears of trade tensions escalating increased.
Stellantis, a 2% drop, and Ford, a 1% decline, were the two major automakers that reacted quickly to this news.
Trump said that tariffs could be “more lenient than mutual.”
As AI slows, data center stock prices fall
Vertiv Holdings, which is tied to the data center infrastructure, suffered heavy losses. Its stock fell 12% in one day, its biggest drop since July.
TD Cowen has warned of the impact that AI-driven upgrades to data centers are having on demand. Hyperscale designs for greater densities have delayed new equipment purchases.
Stocks related to other data centers also fell.
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Eaton Corp.’s (ETN), shares fell 5%
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Trane Technologies (TT) dropped 3%
- Hubbell (HUBB), a 2% decline.
Vertiv is a major beneficiary of AI’s boom. It has seen its stock soar by 137% and 252% between 2024 and 2023. This was due to the surge in demand triggered by ChatGPT, and other AI technologies.
As demand for safe havens surges, gold prices may reach $3500.
Bank of America predicted that gold prices could rise to $3,500 an ounce in two years.
Yellow metal prices have risen 14% in the past year. They’ve also crossed $3,000 an ounce, a first, amid rising geopolitical tensions, and Trump’s policies on trade, which are driving investors to safe-haven investments.
The price of gold was $3,024.80 an ounce at the end of March, up 6% from just one month earlier, as demand, particularly in China, remains strong.
Rosenblatt: ‘Buy the dip’ in USDC growth
Coinbase’s (COIN), despite a cautious sentiment in the crypto markets, saw its trading volume decline. Rosenblatt Securities is still bullish.
The exchange is benefiting from stablecoins, especially USD Coin (USDC), which has a revenue sharing agreement with Coinbase of 50%. This was highlighted by Chris Brendler.
Brendler, who maintains a Buy rating for the stock, noted that investors underestimate Coinbase’s potential non-trading revenues, particularly in this current political climate.
As new information becomes available, this post US stocks fall as Tesla and Nvidia leads tech sell-off amid concerns about tariffs may be updated.
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