Trump's Tariff Uncertainty Drives Market Volatility; Nvidia Earnings Boost Tech Stocks

Uncertainty surrounding President Trump's tariff policies has sparked volatility in U.S. markets, with stocks posting mixed results and the crypto market displaying divergent trends. On Wednesday, Trump confirmed the scheduled implementation of tariffs on Canada and Mexico, and hinted at a 25% tariff on the European Union. This, coupled with weak consumer demand data, has raised concerns about the economic growth outlook.

U.S. stocks initially surged but fell from intraday highs following Trump's tariff comments. The S&P 500 index and the Nasdaq rose slightly, while the Dow fell. Most tech stocks, including Nvidia, which led gains with a 3% rise ahead of its earnings report, performed well. After the market closed, Nvidia's fourth-quarter earnings and current-quarter guidance exceeded expectations, easing concerns about its AI chip production and computing power demand.

The crypto market did not rebound with tech stocks, as Bitcoin fell to a low of $82,256 and is currently trading at $84,705, a 24-hour decline of 4.84%. The top ten mainstream coins collectively experienced a downturn, with ETH and SOL falling by 5.46% and 3.9%, respectively. Altcoins showed divergent performance, with some rising against the trend, causing Bitcoin's market dominance to drop from 61% to 59.5% in two days.

Current tariff concerns and economic slowdown continue to dominate market sentiment. Investors are closely watching the upcoming release of U.S. GDP and PCE data, as well as the latest developments in Trump's tariff plan. The market awaits clarity on these issues to gauge the potential impact on economic growth and market performance.