Nvidia Faces a Major Setback in Market Value Amid Political and Economic Tensions

Nvidia endured a turbulent night in the financial markets, with its market value dropping by $112 billion USD in a single day. This sharp decline followed a widespread sell-off of U.S. stocks on Monday, which significantly impacted the performance of Wall Street.

Political Statements and Their Impact

This drop coincided with intensified remarks from U.S. President Donald Trump criticizing Federal Reserve Chairman Jerome Powell, raising concerns about the independence of the central bank. These statements heightened investor fears, prompting mass sell-offs of major company stocks. Additionally, the lack of positive indicators regarding progress in global trade negotiations contributed to increasing market unease.

Performance of Major Indices on Wall Street

These concerns were reflected in the performance of major indices on Wall Street. The Dow Jones Industrial Average saw a significant drop of 2.48%, closing at 38,170.41 points, while The S&P 500 fell by 2.36%, ending the day at 5,158.20 points. Similarly, The Nasdaq Composite dropped by 2.55%, settling at 15,870.90 points.

Tech Giants Under Pressure

It wasn’t just Nvidia that was affected; stocks of other major tech companies, part of the so-called "Fabulous Seven," also took a hit. Tesla's stock fell by 5.8%, while Nvidia dropped by 4.5%. Stocks of Amazon and Meta Platforms each declined by 3%, and Caterpillar's stock, a major heavy equipment company, fell by 2.8%.

Nvidia’s Crisis: Enormous Losses

Nvidia topped the list of companies most affected by the market downturn, with $112 billion USD evaporating from its market value in just one night. This loss marks one of the largest setbacks in the company’s history and highlights the significant impact on the U.S. stock market.

Long-Term Economic Implications

It is worth noting that Nvidia has incurred total losses exceeding $1.3 trillion USD since the election of former President Donald Trump. This staggering figure reflects the political and economic impacts on the market value of major companies and is equivalent to the GDP of large economies such as Mexico and Indonesia.

Conclusion

These events highlight the significant effects that political and economic tensions can have on financial markets and large corporations, particularly those in cutting-edge sectors like Nvidia. Such enormous losses underscore the challenges that companies may face in a politically and economically unstable environment.