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Semiconductor Stocks Live: SMH ETF Down 3.7%, Taiwan Semiconductor (Nasdaq: TSM) and Intel (NYSE: INTC) Down Early

By Joel South Updated Apr 10, 1:35PM EDT · Published Apr 10, 9:07AM EDT

Key Points

SMH drops 3.75% pre-market as Trump’s 125% China tariffs hit TSM (-1.63%) and Intel (-3.86%).
Nasdaq futures fall 2.57% after yesterday’s 12.16% rally.

Live Updates

Overseas Markets Fare Much Better

Apr 10, 2025 at 1:35 PM EDT | Joel South

The Stoxx 600 in Europe climbed 3.7% to close out Thursday—its strongest day in three years—after Trump scaled back tariffs to 10% for 90 days on most U.S. trade partners, boosting the euro to a seven-month peak against the dollar.

Meanwhile, U.S. markets turned bearish again, with the SPY falling roughly 5.6% by 1:31 PM EDT, erasing much of Wednesday’s 9% surge, as economic worries eclipsed the tariff reprieve. European markets rode a wave of relief, while the U.S. saw renewed selling pressure despite steadier Treasuries.

Tariff Update

Apr 10, 2025 at 12:05 PM EDT | Joel South

Despite the 90 day reprieve on reciprocal tariffs, the war is still raging and the stock market is bottoming once again.

Here are the tariffs still in effect:

145% duty on all goods from China
25% tariffs targeting aluminum, autos, goods from Canada and Mexico not under the United States-Mexico-Canada Agreement
10% levy on all other imports

The markets are taking going into the afternoon trading session.

S&P 500 Down 4.18%
Dow Jones Down 2.27%
Nasdaq Composite Down 4.75%

Markets Turn Lower

Apr 10, 2025 at 10:42 AM EDT | Joel South

Markets are reeling as China fires back with 84% tariffs on U.S. goods, retaliating against Trump’s 125% levy on Chinese imports.

The S&P 500 is down 2.64%, the Nasdaq Composite slides 3.72% and the Dow sheds 2.11% as of 10:40 a.m. Economic Policy Advisor Kevin Hassett touted deal offers from 15 countries this morning, hinting at relief from trade uncertainty, but investors aren’t biting yet, fixated on the escalating U.S.-China standoff.

Inflation Falls - For Now

Apr 10, 2025 at 9:27 AM EDT | Joel South

March CPI numbers just came in and inflation fell to 2.4%, which was slightly under the projected 2.5%.

Core CPI inflation fell to 2.8%, which is also below the 3% expectations.

This marks the second month in row the Core CPI declined, but as tariffs hit and inventory needs replenished, CPI numbers are likely to creep higher in the months ahead.

The morning is off to a rocky start for semiconductor stocks, with U.S. stock futures sinking pre-market after Wednesday’s historic rally. The VanEck Semiconductor ETF (SMH | SMH Price Prediction), a key barometer for the chip industry, is down 3.75% pre-market as of 8:50 a.m. EDT. The pullback comes as Wall Street digests President Trump’s escalating trade confrontation with China, casting a shadow over the optimism that fueled yesterday’s surge.

Yesterday, markets soared after Trump announced a 90-day pause on many of the largest U.S. tariff hikes targeting trading partners. The move sparked a massive rally, with the Nasdaq Composite jumping 12.16%—one of the biggest single-day gains since World War II. Semiconductor stocks, sensitive to global trade dynamics, rode the wave higher. But this morning, the mood has shifted. Let’s break down where things stand pre-market as of 8:47 a.m. EDT:

Nasdaq 100 Futures: Down 2.57%
S&P 500 Futures: Down 2.07%
Dow Jones Futures: Down 1.55%

Here’s what’s driving the semiconductor space today.

China Trade Escalation Weighs Heavy

Wednesday’s relief came as Trump paused tariff hikes on most trading partners, but the celebration was short-lived. Overnight, focus shifted to his dramatic escalation with China, where tariffs on Chinese imports were jacked up to 125%—a retaliation to Beijing’s own 84% levy on U.S. goods.

For semiconductor firms, heavily reliant on China for manufacturing and market demand, this is a gut punch. The trade war is now squarely between the U.S and China and neither side is looking to grant concessions but continue to double down and escalate tariff threats.

TSM and Intel Feel the Heat

Taiwan Semiconductor (Nasdaq: TSM) and Intel (Nasdaq: INTC) are taking hits pre-market. TSM, the world’s leading contract chipmaker, is down 1.63% pre-market after closing at $158.75 yesterday. The stock’s sensitivity to U.S.-China tensions is no surprise—Taiwan’s proximity to China and its critical role in global chip production make it a lightning rod for trade fallout.

Intel, meanwhile, is faring worse, dropping 3.86% pre-market from its Wednesday close of $21.53. The American chip giant has struggled to regain its footing amid fierce competition and domestic production challenges. Today’s slide underscores how trade uncertainty is piling pressure on an already battered stock.

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About the Author Joel South →

Joel South covers large-cap stocks, dividend investing, and major market trends, with a focus on earnings analysis, valuation, and turning complex data into actionable insights for investors.

He brings more than 15 years of experience as an investor and financial journalist, including 12 years at The Motley Fool, where he served as an investment analyst, Bureau Chief, and later led the Fool.com investing news desk. He has also co-hosted an investing podcast and appeared across TV and radio discussing market trends.