Nvidia shares rose Friday, recovering some ground after a sharp selloff in the previous session, as market volatility around tariffs remained the primary catalyst for the chipmaker’s stock.

Shares gained 2.5% to trade at $110.26 on Friday, after falling 5.9% on Thursday.

Broader markets, on the other hand, declined in early trade, with the Dow Jones Industrial Average down 241 points, or 0.6%.

The S&P 500 slipped 0.4%, while the Nasdaq Composite dipped 0.2%.

Nvidia had surged 19% on Wednesday following President Trump’s announcement of a 90-day delay on most reciprocal tariffs.

However, the stock reversed course as investors reacted to a sharp escalation in trade tensions between the US and China.

According to the White House, total tariffs imposed on Chinese imports during Trump’s second term now stand at 145%.

On Friday, China raised tariffs on US goods to 125% but indicated it would not mirror further increases.

Citi cuts NVIDIA stock target price

Citi has lowered its price target on the Nvidia stock to $150 from $163, citing a projected slowdown in graphic processing unit (GPU) sales.

Despite the cut, the bank maintained a buy rating on the stock, with the new target still implying a 39% upside from recent levels.

The revision reflects Citi’s reduced expectations for GPU demand in 2025 and 2026, with sales forecasts trimmed by 3% and 5%, respectively.

Analyst Atif Malik attributed the change to anticipated spending cuts by hyperscalers, including Microsoft, which is reportedly scaling back on data center investments.

“Our revised outlook is based on our expectations that MSFT’s FY26 capex will likely contract, instead of grow,” Malik said.

Trade tensions were also cited as a headwind. Malik warned that Nvidia’s margins could be “moderately impacted by tariffs” and that enterprise investments may stall due to heightened global uncertainty.

However, he noted that Nvidia could benefit from the USMCA exemption.

Nvidia shares have declined nearly 20% so far in 2025 amid a broader tech selloff.

The S&P 500 technology sector has dropped more than 17% year to date, pressured in part by President Donald Trump’s tariff measures and fears of a potential recession.

Wall Street analysts are largely bullish on NVIDIA

Earlier in the week, Wall Street analysts maintained their bullish stance on the AI darling.

Analyst Joseph Moore reiterated Nvidia as a top semiconductor pick, maintaining an overweight rating and a $162 price target.

In a note to clients on Thursday, Moore said the direct impact of tariffs on Nvidia is likely to be limited in the near term, citing strong demand and existing mitigation measures.

“Our view is that the microeconomic impacts for NVIDIA are fairly minimal, particularly because near-term demand remains strong and is already being mitigated,” he wrote.

However, Moore cautioned that broader macroeconomic risks could weigh on the stock, particularly through reduced investment financing.

Bernstein analysts on Monday reiterated an Outperform rating on NVIDIA Corporation with a price target of $185.00.

The analysts noted that while semiconductors have been largely excluded from the scope of recent reciprocal tariffs, NVIDIA’s hardware products would typically fall under the affected categories.

However, due to provisions in the US-Mexico-Canada Agreement (USMCA), goods manufactured in Mexico are exempt from the new tariffs imposed by the Trump administration.

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Tesla shares extended their losses on Friday, falling about 4% to trade around $242.

The decline followed a 7.3% drop on Thursday, when the stock closed at $252.40.

Tesla is now down over 35% year-to-date, marking the steepest decline among major technology firms.

The broader market also opened lower on Friday, with the Dow Jones Industrial Average falling 241 points, or 0.6%, the S&P 500 down 0.4%, and the Nasdaq Composite easing 0.2%.

The recent slide comes after a sharp rally on Wednesday when Tesla surged 22.7%—its second-largest one-day gain on record—following President Donald Trump’s announcement of a temporary pause on reciprocal tariffs for non-retaliating countries.

That rally was second only to the 24.4% gain recorded on May 9, 2013, when the company reported its first-ever quarterly profit.

Despite the rebound, Tesla has been under pressure for much of April, losing over 20% since Trump announced sweeping tariffs on imports earlier this month.

Escalating trade tensions between the US and China have added to investor concerns, particularly for automakers like Tesla facing the dual threat of rising costs and weaker demand.

Tesla stops taking new orders in China

The Elon Musk-led company has suspended new orders for its Model S and Model X vehicles in China, according to checks on the company’s website and WeChat mini-program.

The move affects two of Tesla’s premium models, both manufactured in the United States and imported into China, where retaliatory tariffs have sharply raised prices.

The suspension comes on the heels of China’s latest response to President Donald Trump’s tariff hikes.

On Friday, Beijing increased tariffs on US imports to 125%, following Washington’s move to raise duties on Chinese goods to 145%.

Though Tesla has not issued a formal explanation, the timing suggests the decision is a direct consequence of worsening trade relations, which have made US-built vehicles significantly less competitive in the Chinese market.

The added tariffs make American-made EVs considerably more expensive than domestic alternatives, undercutting their appeal to Chinese consumers.

In contrast, Tesla’s Model 3 and Model Y vehicles—produced at its Shanghai Gigafactory—remain unaffected. These locally built models account for the bulk of Tesla’s Chinese sales and are also exported to other markets, including Europe.

Despite the current disruption, Tesla remains less exposed than other automakers to the latest round of tariffs due to its strong domestic manufacturing base for US sales.

Analysts cut price target on TSLA stock

Wall Street’s outlook on Tesla is souring as escalating trade tensions and weakening demand weigh on the company’s prospects.

Analysts from UBS, Goldman Sachs, and Mizuho have all reduced their price targets, warning of further risks to earnings and profitability.

UBS delivered the harshest assessment, cutting its target to $190 from $225 and maintaining a Sell rating—implying nearly 30% downside from Wednesday’s close.

Analyst Joseph Spak flagged inflated earnings expectations and warned that results from the first quarter of 2025 could prompt further downward revisions.

Goldman Sachs trimmed its target to $260 from $275, holding a Neutral stance.

Analyst Mark Delaney acknowledged Tesla’s AI and software initiatives as potential offsets but noted ongoing concerns around weak auto demand, increased input costs from tariffs, and uncertainty around US EV incentives.

Mizuho offered a more constructive view despite revising its target to $375 from $430.

Analyst Vijay Rakesh retained an Outperform rating and expressed confidence in Tesla’s ability to maintain its leadership in the US EV space, even as it faces intensifying competition in Europe and China.

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European markets closed out a turbulent week with modest losses on Friday, as the intensifying tariff standoff between the United States and China continued to rattle global investor sentiment.

The pan-European Stoxx 600 index slipped 0.1%, retracing slightly after logging its strongest session since March 2022 on Thursday.

The UK’s FTSE 100 rose 0.64% after better-than-expected GDP data for February, while the mid-cap FTSE 250 was flat.

Germany’s DAX declined 0.9% and France’s CAC 40 dipped 0.3%.

The euro continued to strengthen, gaining 1.3% against the US dollar to reach $1.134 — its highest level since February 2022 — on the back of optimism over economic resilience in the eurozone.

Sector-wise, risk-off sentiment remained evident. Industrials, technology, and energy stocks stayed under pressure, while defensive sectors such as utilities and consumer durables attracted buyers.

Trump tariff tensions dominate market narrative

The session capped a week marked by extreme volatility, fueled by policy uncertainty surrounding US President Donald Trump’s new tariff regime.

The White House’s initial move to impose steep “reciprocal tariffs” on nearly 90 countries and territories was walked back midweek, replaced by a 10% blanket levy for 90 days to allow for negotiations, excluding China, which faces a punitive 145% import duty.

In response, Beijing raised its tariffs on US goods to 125%, up from 84%, escalating fears of a prolonged disruption in global trade flows.

Despite these developments, European equities have shown greater resilience than their US counterparts.

While the S&P 500 has dropped nearly 11% year-to-date, the Stoxx 600 is down only 4.4%.

France’s CAC 40 has slipped 4%, the FTSE 100 is lower by about 3%, and Italy’s FTSE MIB has declined just 0.9%.

Germany’s DAX remains an outlier, up 2.4% so far in 2025.

Analysts attribute this relative outperformance to expectations that the economic fallout from the US-led trade conflict will be less severe in Europe.

Several Wall Street banks have noted that Europe’s diversified export base, stronger trade links with Asia outside of China, and more conservative monetary policy responses may cushion the impact.

US stocks on Friday

After starting the day in red, US stocks edged higher Friday as investors tried to find footing following a volatile week dominated by tariff headlines and economic data.

The S&P 500 rose 0.5%, the Dow Jones Industrial Average gained 140 points, or 0.4%, and the Nasdaq Composite climbed 0.7%.

The move higher came despite a setback in consumer sentiment data that briefly pressured equities.

The University of Michigan’s consumer sentiment index for April fell more than expected, signaling rising unease among households.

The University of Michigan’s latest consumer sentiment survey showed a sharp decline in confidence, with the index falling to 50.8 in April from 57 in March.

This marks one of the lowest readings since the pandemic-era lows and underscores rising anxiety among consumers amid inflation concerns and escalating trade tensions.

More notably, consumers’ year-ahead inflation expectations surged to their highest level since 1981, stoking concerns that price pressures could persist even as broader inflation gauges show signs of cooling.

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Consumer confidence in the United States has slumped to its weakest level in over ten years, undercut by escalating trade tensions and growing fears of inflation and job losses.

The latest survey from the University of Michigan, released Friday, revealed that its closely watched consumer sentiment index dropped to 50.8 in April from 57 the previous month.

This marked not only a continued deterioration but also one of the lowest readings since the global financial crisis.

The figure came in well below economists’ expectations of 54.6, according to a Wall Street Journal poll.

The survey’s director, Joanne Hsu, warned of “multiple warning signs” flashing across the economy, with pessimism spreading uniformly across demographics.

He said:

This decline was pervasive and unanimous across age, income, education, geographic region and political affiliation.

Expectations for business conditions, personal finances, incomes, inflation, and labor markets all continued to deteriorate this month.

The survey was conducted from March 25 to April 8, a period bracketed by significant policy announcements.

President Trump’s April 2 declaration of “Liberation Day” tariffs set the tone, triggering a sharp sell-off in financial markets.

Though Trump later announced a 90-day pause on certain measures, he maintained blanket tariffs on nearly all imports, raising fears of prolonged economic strain.

Source: The Wall Street Journal

Inflation fears reach new heights

The University of Michigan survey found that consumers’ short-term inflation expectations have soared to levels not seen since 1981.

Respondents now expect prices to rise by 6.7% over the coming year, a sharp increase from 5% in March.

Long-term inflation forecasts also climbed, reaching 4.4% for the next five years.

These expectations reflect the growing anxiety among consumers as Trump escalated tariffs on Chinese goods to 125%, with Beijing retaliating in kind.

Steel, aluminum, and automotive imports remain subject to steep duties, contributing to a sense of mounting economic pressure.

Hard data, such as employment figures and retail sales, have so far offered a mixed picture.

Hiring continues at a healthy clip, but softer retail sales in recent months hint that households could soon tighten their belts.

Federal Reserve Chair Jerome Powell sought to temper concerns, saying last week:

“Sometimes the surveys are very negative, but they keep spending. People spent right through the pandemic, and they spent right through this time of higher inflation.”

Wall Street jitters and recession risks loom larger

Market volatility, intensified by tariff hikes, has rattled even affluent consumers whose spending has buoyed the economy through recent years of high inflation.

Bill Adams, chief economist at Comerica Bank, cautioned that sustained market turbulence could finally dampen their confidence.

“Wealthy consumers’ stock market gains kept the economy growing in 2024 despite high prices, but the wealthy won’t feel confident enough to keep spending if this keeps up,” Adams noted in an analyst report.

Adding to the chorus of concern, BlackRock chief executive Larry Fink likened the current environment to the uncertainty of the 2008 financial crisis.

We’ve seen periods like this before when there were large, structural shifts in policy and markets — like the financial crisis, Covid-19 and surging inflation in 2022.

“We always stayed connected with clients, and some of BlackRock’s biggest leaps in growth followed,” he added.

JPMorgan Chase CEO Jamie Dimon also weighed in, describing the outlook as fraught with risks.

“The economy is facing considerable turbulence, with the potential positives of tax reform and deregulation and the potential negatives of tariffs and ‘trade wars,’” Dimon said following the bank’s quarterly earnings release.

As both soft data and consumer sentiment sour, the durability of the US economy appears increasingly in question.

Analysts and policymakers alike will be watching closely to see whether spending habits hold or falter under the combined weight of inflation, policy shifts, and growing market unease.

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Wall Street closed sharply higher on Friday, capping a roller-coaster week, after the White House hinted it was open to reaching a trade agreement with China.

A wave of renewed optimism sent the major indexes soaring, providing some relief after days of intense volatility.

The S&P 500 jumped 1.8%, while the Dow Jones Industrial Average climbed 658 points, or 1.7%.

The tech-heavy Nasdaq Composite surged 2%, leading gains as investors rushed back into riskier assets.

Markets gained momentum in the afternoon following comments from the White House suggesting President Donald Trump was “optimistic” about China seeking a deal with the United States.

The upbeat sentiment helped investors shake off concerns that had rattled markets earlier in the week.

This week marked one of the most turbulent periods for US stocks in recent history.

On Thursday, major averages plummeted as fears over escalating trade tensions pushed traders into a risk-off mode.

The S&P 500 sank 3.46%, the Dow Jones dropped by 1,014 points, or 2.5%, and the Nasdaq tumbled 4.31%.

The sell-off came just a day after a historic rally on Wednesday, when Trump announced a 90-day pause on certain tariffs.

That announcement triggered a powerful rebound: the S&P 500 soared 9.52%, marking its third-largest one-day gain since World War II, while the Dow exploded higher by more than 2,900 points.

Volatility remained a major theme throughout the week.

The CBOE Volatility Index (VIX), Wall Street’s fear gauge, spiked above 50 earlier before easing slightly to hover near 44 by Friday.

Such elevated levels of volatility typically reflect deep investor uncertainty about economic and policy risks.

Trade policy remained the dominant market driver.

While Trump’s softer tone on tariffs sparked optimism, investors remain cautious about the long-term outlook for US-China relations.

Many market participants fear that further escalations or policy shifts could trigger another bout of selling.

Aside from trade news, economic data and corporate earnings updates also played a role in driving sentiment.

However, trade developments largely overshadowed other indicators, reinforcing just how sensitive markets have become to geopolitical headlines.

Looking ahead, analysts warn that while Friday’s rally is encouraging, volatility may persist as investors continue to weigh mixed signals on the trade front.

The strong end to the week helped major indexes recover some of their earlier losses, but all three remained down for the month.

Traders and investors alike are bracing for more headline-driven moves in the coming weeks as negotiations between Washington and Beijing evolve.

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