President Trump’s announcement today that he would suspend reciprocated tariffs for a period of three months, during which a 10% foundation tariff on shipments will be in effect, provided much-needed impetus for the stock market.
The news caused the Nasdaq Composite and S&P 500 to jump 12.2% and 9.5%, respectively, on expectations that the recent trade unrest would end. According to this news, Nvidia’s stock forecast remains strong as Bank of America places a wager on AI resilience.
The technology industry, which had been particularly severely hit this year, saw the largest gains. Despite being among the top-performing companies in 2023 and 2024, tech equities have underperformed this year due to growing concerns about economic weakness and a possible peak in AI spending. Also, Jim Cramer predicts a decline in orders ahead after reaching tariff exemption.
According to the post on X, AI sweetheart, one of the most well-known equities that has suffered this year is Nvidia. The share price of Nvidia, which is well-known for its powerful GPUs that are used to train and execute AI applications, increased by 171% in 2024. Since 2022, the stock price has increased by an astounding 684%.
However, the going has been considerably more difficult this year. With the introduction of a low-cost AI model called DeepSeek, Nvidia shares have plummeted by over 15% due to growing concerns that large enterprises like Microsoft and Amazon may reduce their investments in AI data centers if the economy deteriorates.
Investors are concerned about Nvidia’s price downdraft, yet on April 9, the company’s stock jumped 19% due to news about China.
