16.04.2025

The Nasdaq 100 Under Pressure: Causes and Effects for Investors

Background and Causes

The Nasdaq 100 index has recently suffered significant losses, attributed to several factors. AMD and Nvidia are the biggest losers, pointing to the strained trading environment and specific regulatory measures. Here are the key aspects influencing the current market development:

Trade Conflicts and Tariffs

The ongoing trade conflicts between the U.S. and China, as well as the tariffs announced by President Donald Trump, have led to substantial uncertainty in the markets. These measures burden not only the affected countries but also the global economy as a whole.

Technology Sector Under Pressure

Particularly, the technology sector is suffering from the trade restrictions. Nvidia and AMD are heavily affected as they rely on the global market. Nvidia recently faced stricter restrictions for exporting AI chips to China, which could lead to significant losses.

Market Volatility

The Nasdaq 100 has lost about 12.05 percent in value since the beginning of 2025. This development reflects the general uncertainty and volatility in the markets.

Impact on Private Investors and Savers

Risk Behavior

The uncertainty in the markets leads investors to become more cautious and flee to safe assets like gold or government bonds.

Investment Decisions

The development of the Nasdaq 100 and the technology sector is crucial for investment decisions. Private investors and savers need to adapt their strategies to the changing market conditions.

Long-term Perspective

Despite the current challenges, the technology sector remains attractive in the long term. Investors should focus on strategic diversification of their portfolios to minimize risks.

Forecasts and Outlook

Global Economic Forecasts

The World Trade Organization (WTO) predicts a decline in global trade volume in 2025, which could negatively affect global economic development.

Recovery Prospects

A moderate recovery in global trade is expected for 2026, which could also have positive effects on the technology sector.

Political Developments

Political decisions, especially in the trade area, will continue to play a central role. Investors should watch for changes in trade policy as these can have significant impacts on the markets.

In summary, the current situation in the U.S. stock market is characterized by high volatility and uncertainty. Private investors and savers should focus on a long-term strategy and diversify their investments to minimize risks.