On Monday, the New York stock market stopped its steep decline.
Investors are pinning their hopes on reciprocal tariff negotiations.
U.S. President Donald Trump stated that while there would be no suspension of tariffs, negotiations would continue. Treasury Secretary Scott Bessent added that the White House is preparing for talks with over 50 countries.
M7 big tech stocks saw mixed results across companies as the sharp decline paused.
Market Stabilization
The New York stock market entered a consolidation phase.
After plummeting nearly 10% over two days on April 3 and 4, the three major indices significantly narrowed their losses, with the tech-heavy Nasdaq turning positive.
The Nasdaq climbed 15.48 points (0.10%) to close at 15,603.26.
The S&P 500, which reflects broader market conditions, narrowed its losses to 0.2%, finishing down by 11.83 points (0.23%) at 5,062.25.
Although the S&P 500 briefly dropped to 4,835.04 during the day, entering temporary bear market territory, it recovered significantly and ended with only a slight decline. At its lowest point, the S&P 500 was down 21.3% from its recent high. However, at the close, the drop had narrowed to 17.6%, showing little change from the previous days.
A market is considered bearish when it falls more than 20% from its recent peak. Despite today’s gains, the Nasdaq remains in bear territory, down 22.7% from its high.
The Dow Jones Industrial Average shed 349.26 points (0.91%) to close at 37,965.60.
CBOE Volatility Index (VIX), Wall Street’s fear index, continued its upward trend, rising 1.67 points (3.69%) to 46.98.
Apple Loses $638 Billion in Market Value Over Three Days
Facing severe cost pressures from Trump’s tariff policies, Apple’s stock price plummeted 19% over three days.
On this day, Apple closed down $6.92 (3.67%) at $181.46.
It has lost a $638 billion in market capitalization during this period.
Apple finds itself in a tight spot.
Its main production base in China has faced an additional 54% tariff since Trump took office. The company’s efforts to diversify its supply chain to countries like India, Vietnam, and Thailand have been affected by Trump’s tariffs.
Tesla, like Apple, continued its decline for three consecutive days.
Tesla CEO Elon Musk has indirectly voiced his opposition to Trump’s tariff policies, and it’s becoming clear that Tesla is also being impacted.
Tesla’s stock dropped $6.14 (2.56%) to close at $233.29.
Since April 3, Tesla’s stock has plunged over 17%.
In contrast, Nvidia saw a significant increase.
Despite the uncertainty of Trump’s semiconductor tariffs, buyers rushed to Nvidia after its stock had fallen below the $100 mark.
Nvidia closed up $3.33 (3.53%) at $97.64.
After tumbling more than 14% over the previous two days, Nvidia’s surge helped narrow its three-day losses to about 11%.
Alphabet rose $1.50 (1.02%) to $149.24, while Amazon jumped $4.26 (2.49%) to $175.26.
Meta Platforms also gained $11.52 (2.25%) to finish at $516.25.
However, Microsoft (MS) dipped $1.98 (0.55%) to close at $357.86.
U.S. Steel Soars
Steelmaker U.S. Steel surged by 16%.
Trump’s order to reconsider the rejection of Nippon Steel’s acquisition of U.S. Steel reignited merger expectations.
U.S. Steel shares surged $6.21 (16.22%) to $44.50.
Nippon Steel had offered to buy US Steel for $55 per share, a deal that U.S. Steel initially accepted but was blocked by the Biden administration.
While Trump had previously expressed skepticism about the deal, his call for a review has sparked speculation that his administration might approve the sale.
