NASDAQ index now down -1.6% | Forexlive

The NASDAQ index is down sharply. The current price is down -300 points or -1.66% at 17969.44. The low price reached 17959.93.

Shares of Nvidia and Tesla are leading the downside. Tessa shares are down -4.78% while Nvidia shares are down -5.52%.

The decline in NVidia follows growing uncertainty around it’s AI chip business in China. Alibaba Chairman Joe Tsai questioned the massive AI infrastructure spending at a Hong Kong investment summit, casting doubt on the need for such large investments.

Meanwhile, the U.S. added several Chinese firms—including subsidiaries of Inspur Group, a major Nvidia customer—to a trade blacklist, restricting access to American technology.

As if that was not enough, China is reportedly discouraging domestic tech giants from buying Nvidia’s H20 chip, citing energy-efficiency concerns.

Though the rules aren’t yet enforced, Nvidia is preparing to meet with Chinese regulators and may revise the chip design—potentially affecting its competitiveness. For today, the market does not care.

Meanwhile, Tesla is under pressure as the fallout from Musk’s involvement in the Trump administration has hurt sales in Europe and the US. Increased trade tensions will also likely hurt China sales where Tesla has a presence as well.