US OPEN: Semiconductor Tariffs Weigh on Tech Stocks (16/04/2025)

• Big Tech sells off on semiconductor tariffs

• United Airlines delivers robust earning and dual Q2 forecast

U.S. equities and the dollar are taking a hit during Wednesday’s trading amid further tariff-related tensions. The tech-heavy Nasdaq suffers the most (-2%), followed by the losses on S&P 500 (-1%), DJIA (-0.25%) and Russell 2000 (-0.65%).

The Nasdaq 100 Index dropped 2.21% amid a tech sector rout triggered by US restrictions on chip exports to China. Nvidia and AMD were hit hard, with Nvidia (NVDA.US) falling 7% and AMD (AMD.US) dropping 6.3% after both companies warned of significant charges related to the export curbs. ASML (ASML.US) also saw a 5% decline after reporting disappointing earnings. 

These developments reflect heightened trade tensions under President Trump’s administration, which has exacerbated uncertainty for tech companies and the global economy. The semiconductor sector, in particular, is facing pressure, as these restrictions could disrupt supply chains. 

US100 (D1)

The contract for Nasdaq 100 experienced a bearish drop as global trade and supply chain concerns contributed to negative sentiment in the tech-heavy index, emphasizing the vulnerability of semiconductor stocks to geopolitical risks and market volatility. The quotation sits stubbornally in the between psychological levels (18K-19K), with RSI pointing to ‘neutral’ after recent record-breaking volatility. It also seems that we will have to wait longer for a real test of the 30-day exponential moving average.

Source: xStation5

Corporate news:

• Nvidia (NVDA.US) loses 6% after the Trump administration bans exports of its H20 AI chip to China, citing national security concerns. The company warns of $5.5 billion in writedowns this quarter and potential annual revenue losses of up to $18 billion. The H20 chip, designed to comply with earlier restrictions, now requires an export license “for the indefinite future.” The ban triggered a broader selloff in semiconductor stocks, with AMD, Samsung, and SK Hynix also declining. Analysts warn the move could significantly reduce Nvidia’s data center exposure to China and further escalate the US-China tech conflict over advanced chip technologies.

• Community Health Systems (CHS.US) adds 1.4% after agreeing to sell its 80% stake in Cedar Park Regional Medical Center to Ascension Health for $460 million. The deal, expected to close in late Q2 or early Q3 2025, sparked concerns over strategic divestment and future revenue impact.

• Hertz (HTZ1.US) shares soared 14% after Pershing Square Holdings disclosed a $12.7 million stake in the company.

• JB Hunt (JBHT.US) shares dropped 8.5% after the company reported disappointing revenue across several key segments, including Dedicated Contract Services, Integrated Capacity Solutions, Truckload, and Final Mile Services. While intermodal revenue beat estimates, overall Q1 revenue of $2.92 billion fell 0.8% year-over-year. EPS came in at $1.17, slightly above expectations but down from $1.22 a year earlier.

• Lyft (LYFT.US) agreed to acquire FreeNow, a European taxi-focused mobility platform, for approximately $197 million from BMW Group and Mercedes-Benz Mobility. FreeNow operates in over 150 cities across nine European countries, including Germany, France, the UK, and Spain. The acquisition marks Lyft’s first major move into the European market, significantly expanding its international footprint. The deal is expected to close in the second half of 2025. The shares are up 1.15%;

• MP Materials (MP.US) adds 11% after President Trump's recent decision to launch an investigation into tariffs on critical minerals, including rare earths. The probe, which aims to assess the impact of mineral imports on U.S. national security, has raised concerns about the U.S.'s reliance on foreign imports, particularly from China. As a major player in the rare earth market, MP Materials stands to benefit from increased demand for domestically sourced materials, should tariffs or other measures be implemented to reduce dependence on foreign supply chains. The stock's rise reflects market optimism regarding this shift.

• United Airlines (UAL.US) shares rise 4.2% after posting Q1 earnings of 91 cents per share, exceeding expectations. The airline provided dual profit forecasts for 2025: $11.50 to $13.50 per share if the economy remains stable, and $7 per share in a recession. United’s revenue rose 5.4% year-over-year to $13.21 billion. The airline is reducing domestic flights by 4% starting in Q3, amid uncertainty caused by the trade war and changing policies. Despite challenges, United’s bookings remain stable, with premium sales up 17% and international flights up 5% year-over-year.