Q1 market turmoil: Tech giants hit hard by Trump’s deregulatory plans

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One of the most notable trends has been the sharp rise in gold prices, which surged past $3,100 per ounce as investors sought safe-haven assets amid growing economic uncertainty. At the same time, the US dollar weakened due to market fears over potential trade wars, higher fiscal deficits, and an unpredictable policy environment.

Following the introduction of significant tariffs on goods from China and other trading partners, the initial wave of tariffs has weighed heavily on stock performance, particularly in sectors like technology, manufacturing, and agriculture. The market responded with sharp sell-offs, as companies anticipated higher costs and disruptions to global supply chains.

US tech stocks, once the market darlings, have faced considerable headwinds, with the Nasdaq experiencing sharp declines. This sell-off has been driven by investor concerns over potential regulatory crackdowns on major firms and higher corporate borrowing costs as interest rates continue to rise.

Amazon experienced substantial stock declines due to concerns over trade policies and potential economic downturns as has Microsoft.

AMD's stock has shed about 20% since January. Advanced Micro Devices Inc, which relies heavily on international supply chains, faces challenges from trade policies that may increase production costs and affect global competitiveness.

Nvidia Corporation (NVDA), a leading artificial intelligence chipmaker has seen its shares plummet more than 17% since President Donald Trump's inauguration. This decline is largely due to concerns over new tariffs impacting manufacturing costs, as Nvidia assembles many of its products outside the US.

Tesla's shares fell 15.4% on 11 March, 2025, amid broader tech-sector losses.

Market volatility deepens

Meanwhile, bond markets have also been volatile, with yields fluctuating as investors assess the Federal Reserve’s response to Trump's policies. The central bank faces pressure to balance inflation concerns with the need to support economic growth.

Outside the US, global markets have been mixed. European and Asian markets have seen increased volatility, particularly as China grapples with economic slowdown and major banks receive a $72bn recapitalisation boost.

Looking ahead, investors remain cautious, closely watching Trump's trade and fiscal policies to gauge their impact on financial stability and global economic growth. There is the possibility of further escalations in trade tensions, including new tariffs on additional products or even the implementation of non-tariff barriers such as stricter regulations or sanctions.

These developments could put even more pressure on corporate earnings, leading to wider economic implications such as higher inflation or slower GDP growth. For businesses that rely on international trade, the prospect of more tariffs could limit profitability, and for those already hard hit such as in tech or export-driven industries, the volatility looks only set to exacerbate.

With the Federal Reserve's interest rate hikes compounding the situation, the market faces a precarious environment, as rising borrowing costs further add to the burden on businesses.

Investors are bracing for potential shocks, which could lead to a wider sell-off and greater uncertainty in the stock market.