Nvidia, Tesla lead $250 billion tech sell-off amid tariff fears

Shares of Nvidia and Tesla led a significant decline in technology stocks, with Nvidia dropping over 6% and Tesla falling by 5.5%, contributing to a broader sell-off that impacted the S&P 500 and Nasdaq indices. Concerns over renewed trade tensions, particularly following President Trump's announcement of new auto import tariffs, have rattled investor confidence, leading to substantial market losses including a combined $254 billion drop in market capitalization for the two companies. Analysts have noted that the volatility in the tech sector reflects broader apprehensions regarding AI spending and regulatory impacts, particularly following a downgrade of Tesla's stock to 'hold' and potential new energy regulations affecting Nvidia. Other major tech companies also faced declines, including Meta and Amazon, while gold prices rose amid investor flight to safe havens amid uncertainty. Despite recent corrections, the S&P 500 remains within 6.5% of its record high, although market strategists warn of ongoing volatility due to the impending tariffs. Overall, the market's reaction underscores the interconnectedness of trade policies and tech stock performance.