Apr 01, 2025 (Baystreet.ca via COMTEX) --
On Monday, the abrupt stock drop reversal ended with the Dow Jones gaining 417.86 points. The 1.00% gain is too little and too late. In the first quarter, the biggest companies by market capitalization caused investors 20% in losses.
Nvidia (NVDA) fell by around 22% in Q1. The downtrend started last November 2024. Investors likely sensed that the new Administration's government spending cuts would hurt the tech sector. Companies like Palantir (PLTR) and Lockheed Martin (LMT) may win fewer contracts, hurting their growth.
Tariff threats are hurting consumer sentiment. By creating an expectation of an economic slowdown, consumers are spending less. This included big-ticket items like electric vehicles. Tesla (TSLA) shares lost 35.83% year-to-date. Sales will worsen as the boycott against CEO Elon Musk and the EV firm accelerates.
Tesla's rivals fell by less. Rivian (RIVN) lost 6.39% YTD while Lucid Group (LCID) dropped by 19.87%. Ford (F) gained 2.94%. General Motors (GM) dropped by 12% since the stock ended the year trading at a 52-week high.
Expect market uncertainties to worsen due to the President's on-and-off tariff policies. Tariffs will increase inflation but inflation from insurance will be worse. Tesla owners will need to pay more as vandals illegally burn vehicles at dealerships.
COMTEX_464132802/2559/2025-04-01T09:42:41
