The Worst Week Yet: Nasdaq’s Historic Reversal
It’s official—the stock market is in full-on meltdown mode. April 2025 is shaping up to be one of the most volatile months in recent history. Today marks the fourth consecutive day of steep losses, and for those hoping for a relief rally, it’s been the opposite: a brutal reality check.
On top of that, today, the Nasdaq experienced one of the worst intraday reversals in history. It was up 4.5% by midday… only to close the day down 2.3%. Yesterday wasn’t much better, with the market briefly shooting up after a false report that the White House was considering a 90-day pause on reciprocal tariffs—only for that hope to be quickly dashed.
So… What’s Going On?
If you’re wondering why the market’s reacting like this, the answer lies in tariffs, tech stocks, and global uncertainty. After a weekend of tense headlines, President Trump announced a 50% hike on Chinese imports, further escalating the ongoing trade war.
Investors had been holding out hope that this was just a high-stakes bluff. But by the close of trading today, reality set in: a massive 104% tariff on key Chinese goods will go live at 12:01 AM on April 9th. And the market is not reacting well.
When you add these tariffs to overextended valuations, the tail end of a two-year bull run, and the ever-present global economic jitters, you’ve got the perfect recipe for panic.
Investors Are Asking: What Now?
That’s the million-dollar question. Right now, even the calmest investors are feeling the heat. My own tech-heavy portfolio is deep in the red, and I find myself stuck in that weird zone where it’s too late to sell but doesn’t feel early enough to buy either.
Here’s what I’m chewing on:
- Stocks like Nvidia, Google, and Amazon are approaching what Morningstar calls “five-star territory” (i.e., undervalued).
- But even those names are trading well above their historical P/E ratios.
- If these tariffs stick around, tech could have a lot more room to fall.
One truth that tends to hold during times like these: doing nothing often beats doing something dumb. Now could be the time to double down on dollar-cost averaging (DCA), stick to your plan, and avoid emotional decisions.
My Take: Tech Will Survive, But There’s More Pain Ahead
Personally, I’m holding my positions for now. I’ve been keeping a close eye on Nvidia and Amazon, and while they’ve taken some hits, I still believe in their long-term fundamentals. But I’m not buying just yet—I think we’re in for more downside before things stabilize.
It also seems likely that this tariff policy will be adjusted for US allies, like Japan and Vietnam. However, actions against China look like they’ll stick for now.
My Watchlist:
- Nvidia
- TSMC
- UPS
- Uber
- Amazon
Final Thoughts: Keep Calm, But Stay Sharp
We’ve seen back-to-back blockbuster years in 2023 and 2024, and maybe that set the stage for this kind of reset. There wasn’t much room for error heading into 2025. The market was excited about a pro-business administration, extended tax cuts, and regulatory rollbacks—but this tariff war has shifted the narrative fast.
Whether this is a short-term overreaction or the beginning of a broader market correction is still up for debate. But if history is any guide, the biggest investing mistakes tend to happen when everyone is making decisions based on the ugliest headlines.
Stay sharp. Stay calm. And if you’re sitting on cash, start building your watchlist—this could be where the next great buying opportunity begins.
Key Takeaways:
- Stock Market Volatility: April 2025 sees four consecutive days of steep losses, with the Nasdaq experiencing a historic intraday reversal.
- Tariff Escalation: President Trump’s announcement of a 50% tariff on Chinese imports and a 104% tariff on key Chinese goods at 12:01 AM on April 9th is driving market panic.
- Tech Stocks: Nvidia, Google, and Amazon are nearing “five-star” undervalued territory, but they remain overvalued compared to their historical P/E ratios.
- Market Outlook: The stock market is overdue for a reset, and investors are grappling with how to respond amid global uncertainty and economic jitters.
- Investment Strategy: Now may be a good time to consider dollar-cost averaging (DCA) and sticking with your investment plan, rather than making emotional decisions.
- Watchlist: Keep an eye on companies like Nvidia, TSMC, UPS, Google, Uber, and Amazon, which could offer long-term opportunities.
What Are Your Thoughts on the Market?
The stock market is in a state of unprecedented volatility right now, and we want to hear from you! Are you buying, selling, or holding onto your portfolio during this time of uncertainty? Drop your thoughts in the comments below
