Key Points:
- Nvidia stock dropped 7.6% in the first quarter, falling below a key health indicator for investors.
- Tesla performed even worse than Nvidia, with its stock price plunging 24% since the year began.
- President Trump will address the nation Wednesday night regarding the ongoing conflict with Iran.
- Mixed signals from Washington, including new ship deployments, have left the stock market guessing.
Even the most successful companies hit rough patches. Nvidia, the giant behind the AI revolution, had a surprisingly tough first quarter. Its stock dropped by 7.6%, which means it actually performed worse than the overall S&P 500. After a massive run in 2025 where the stock grew by nearly 40%, the chipmaker is finally feeling some pressure from a nervous market.
The stock even fell below its 200-day moving average in mid-March. This is a number that investors watch closely to see if a company’s long-term trend is still healthy. While it is not time to panic yet, the “AI gold rush” seems to be cooling off as global tensions rise. Investors are moving their money into safer places while they wait to see what happens next.
If there is any good news for Nvidia fans, it’s that they aren’t doing as badly as Tesla. Elon Musk’s electric car company saw its stock plunge by a staggering 24% in the first quarter. Out of the “Magnificent Seven” tech giants, Tesla is clearly struggling the most right now, making Nvidia’s smaller dip look much more manageable by comparison.
Much of this market nervousness comes from what is happening in Washington. President Trump is scheduled to give a prime-time speech on Wednesday night to update the country on the war in Iran. This comes just days before his April 6 deadline for Iran to reopen the Strait of Hormuz. The administration has already warned it might use military force to stop tankers carrying Iranian oil.
To make things even more confusing, the White House is sending mixed signals. Trump often talks about ending the war soon, but the military is still moving forward. On Tuesday, a third aircraft carrier—the USS George H.W. Bush—left Virginia to head toward the Middle East. This suggests that the government is preparing for things to get worse, even as the President talks about a withdrawal.
Markets hate uncertainty, and right now, there is plenty of it. Between falling tech stocks and the threat of a bigger war, everyone is waiting to see what the President says on Wednesday night. Whether he chooses to step back or push forward will likely decide where the stock market goes next week.
