Nasdaq 100: Tech Selloff Intensifies on Nvidia Plunge While Defensive US Stocks Find Support

Trump’s Tariff Bombshell Rattles Wall Street

The S&P 500 and Nasdaq fell on Monday as investors pulled back from risk assets following President Trump’s weekend announcement of upcoming reciprocal tariffs that will include all nations.

The Dow Jones Industrial Average managed to stay positive, supported by gains in UnitedHealth and Home Depot while its tech-lighter composition shielded it from the worst of the selling pressure.

Global stocks tumbled while gold prices reached new highs and U.S. government bonds climbed. President Trump is set to announce the detailed tariff plans on Wednesday, adding to previously imposed tariffs on aluminum, steel, autos, and Chinese goods.

Recession Risk Spikes to 35%

In response to growing tariff uncertainties, Goldman Sachs has raised its U.S. recession probability to 35% from 20% and cut its year-end S&P 500 target to 5,700. The investment bank also forecasts additional interest rate cuts by the Federal Reserve as economic headwinds intensify.

Mark Luschini, chief investment strategist at Janney Montgomery Scott, noted that “many industries have begun to feel the impact of the tariffs that have been announced and are making assumptions about what’s likely to follow.”

Sector Spotlight: Defensive Plays Show Strength

While most sectors showed weakness, defensive segments demonstrated resilience. Consumer staples surged (+0.99%), energy advanced (+0.78%), and utilities edged higher (+0.21%), providing some counterbalance to the broader market decline.

Tech Titans Under Pressure

Technology stocks led the market decline, with the sector dropping 1.46% as investors questioned future AI spending plans. The tech-heavy Nasdaq is now on track for its steepest quarterly drop in three years as risk appetite wanes.

The CBOE Volatility Index jumped to a two-week high of 22.44 points, signaling heightened investor anxiety.

Stock Movers: Big Names See Red

Nvidia plunged 3.9% and Microsoft fell 2.2% as investors reassessed growth prospects in the face of potential trade disruptions. Tesla shares dropped 4% after Stifel lowered the EV maker’s delivery forecast ahead of its first-quarter report due Wednesday.

In the pharmaceutical space, Moderna collapsed 8.7% and Pfizer dipped 0.9% following reports that the FDA’s top vaccine official had been forced to resign.

Market Outlook

Traders should closely monitor this week’s critical economic releases, including ISM business activity surveys and the non-farm payrolls report, which could further influence market sentiment.

Several Federal Reserve officials, including Chair Jerome Powell, are scheduled to speak, potentially providing insight into monetary policy direction.

With declining issues outnumbering advancers by 1.53-to-1 on the NYSE and 2.34-to-1 on the Nasdaq, market breadth confirms the negative bias.

The technical picture has deteriorated, with the Nasdaq posting 501 new lows against just 29 new highs, suggesting further downside risk as trade policy uncertainties persist.

More Information in our Economic Calendar.