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Live Nasdaq Coverage: Nasdaq Composite Eyes Correction, TSM Bucks Downward Trend
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The markets are extending yesterday’s tariff-induced sell-off, with all three of the major stock market indices trading deep in the red. The Nasdaq Composite is teetering on correction territory and is only 0.5% away as the tech slump continues.
The Trump tariffs are now in effect, including a hefty 25% on Mexico and Canada as well as 20% on China imports. Corporate America is responding amid expectations of retaliatory tariffs that will cut into profits. Taiwan Semiconductor (NYSE: TSM) is bucking the downward trend because it has committed to investing $100 billion in the U.S. on top of its previous commitment of $65 billion in a bid to sidestep tariffs.
In a press conference with President Trump, Taiwan Semi CEO C.C. Wei said the company is “producing the most advanced chip made on U.S. soil” in Arizona, where it intends to build another three factories to create the world’s most powerful chips.
TSM’s gains are failing to lift broader sentiment, with each of the Magnificent 7 stocks under pressure with the exception of Apple (Nasdaq: AAPL), which is posting fractional gains. Yesterday, Apple CEO Tim Cook teased “something in the Air” that is coming this week.
The gold price has been benefiting from the tariff fears and weaker U.S. dollar as investors seek out a hedge of protection asset. The gold price is trading at $2,920 per ounce today.
Here’s a look at the performance as of morning trading:
Dow Jones Industrial Average: Down 636.35 (-1.4%)
Nasdaq Composite: Down 315.06 (-1.68%)
S&P 500: Down 92.68 (-1.58%)
Key Points
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Stocks are in freefall as the Trump tariffs take effect.
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The tech-heavy Nasdaq Composite is encroaching on correction territory.
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Taiwan Semi is up on a robust spending plan the CEO outlined for the U.S. market.
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Market Movers
Goldman Sachs has introduced the Goldman Sachs U.S. Large Cap Buffer 3 ETF (GBXC), its latest in a series of funds that are designed to provide downside protection to investors in the current uncertain climate. The buffer fund, as it’s known, will be reset on a quarterly basis and is designed to protect investors against losses between 5% and 15% in the corresponding S&P 500 ETF.
Consumer stocks like Hershey (NYSE: HSY), McDonald’s (NYSE: MCD) and PepsiCo (NYSE: PEP) are all gaining ground as investors shift to a risk-off appetite.
Tesla (Nasdaq: TSLA) is spiraling nearly 8% on the day as it continues its whipsaw performance of late. Weak China sales are to blame, as the company’s China-manufactured vehicle sales drop to their lowest level in three years. Tesla’s performance is the result of China’s EV pricing wars that have come as a result of heightened competition in the country.
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