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#NasdaqCrash šØšØ
š Nasdaq's First Quarter Performance:
The Nasdaq Composite Index declined by 10.5% in Q1 2025, marking one of its most challenging quarters since 2022.
š» Tech Sector Under Pressure:
Hedge Fund Activity: Hedge funds have been reducing their exposure to tech stocks at the fastest rate in six months, with significant sell-offs in companies like Nvidia, Advanced Micro Devices (AMD), and Tesla.
Amazon's Initiatives: Despite a 1.2% drop in its stock price to $190.26, Amazon continues to invest heavily in AI, introducing the Amazon Nova Act AI agent and planning over $100 billion in capital expenditures focused on AI advancements.
ā ļø Tariff Concerns and Economic Implications:
"Liberation Day" Tariffs: President Donald Trump's impending tariffs, set to be announced on April 2, are expected to impose an additional 10% on Chinese imports, heightening fears of a global trade war and impacting sectors like consumer discretionary stocks.
Impact on High-Tech Firms: The tariffs are prompting companies to reevaluate supply chains, with firms like Smiths Group expanding U.S. manufacturing to mitigate trade restrictions.
š Global Market Reactions:
Taiwan's Market Decline: The Taiex index in Taiwan fell by 10% in Q1, with major semiconductor companies like TSMC and Foxconn experiencing significant share price drops due to their exposure to U.S. trade policies and the diminishing enthusiasm around AI investments.
š Investor Sentiment and Outlook:
Recession Fears: The combination of tariff escalations and persistent inflation has led financial institutions like Goldman Sachs to increase the probability of a U.S. recession to 35%, with expectations of further interest rate cuts by the Federal Reserve.
Market Volatility: Analysts anticipate continued market volatility, particularly affecting major tech companies, as they navigate the dual challenges of increased tariffs and substantial capital expenditures in AI development.