U.S. Stocks Slide Amid Tariffs and Marvell Technology’s Tepid Forecast

Last updated Mar 6, 2025

Understanding the S&P 500 and Its Impact on the Stock Market

This article provides essential insights into the S&P 500, a pivotal stock market index. Get to grips with the impacts of artificial intelligence spending and tariff fears on US stocks.

Chip Stocks Take a Hit

Marvell Technology’s lukewarm revenue forecast had a significant impact on chip stocks, resulting in an over 19% drop for the company. Other chip manufacturers such as ON Semiconductor, Taiwan Semiconductor, and Nvidia also faced losses.

The Influence of Political Decisions on the Stock Market

Political decisions, particularly those relating to tariffs, have led to shifts in the stock market. The announcement of a 25% tax on Mexican and Canadian goods by President Donald Trump significantly impacted stocks, causing a two-day plunge.

A Temporary Respite with the Delay of Automotive Tariffs

Despite these tariffs, President Trump’s decision to delay his tariff on auto imports for a month brought some hope for the market, leading to a rebound in stocks. However, it is predicted that his tariff plans will continue overall.

Response from Canada and Mexico

Canada and Mexico responded to these tariffs with their own measures. Canada announced a retaliatory 25% tariffs, and Mexico is scheduled to announce its equivalent measures soon.

Economic Fears Amid Stock Market Changes

Amid these changes, numerous economists express fears over potential inflation due to a possible trade war, with some suggesting a scenario of “stagflation” or a sluggish economy with high inflation. The effects of falling consumer confidence and spending amid economic uncertainty are also cause for concern.

Corporate Shifts in the Stock Market

Various corporate events have also led to shifts in the stock market. Retailer Macy’s and cloud-solutions company Veeva Systems saw changes in their shares due to their respective quarterly results. Other notable changes include those in the shares of ON Semiconductor and Alibaba, who unveiled its latest AI model aiming at DeepSeek.

Cryptocurrency and Its Role in the Economy

Commerce Secretary Howard Lutnick announced that President Trump will reveal plans for a strategic bitcoin reserve at the upcoming White House inaugural crypto summit. While this announcement led to speculation about the future role of bitcoin in the strategic reserve, bitcoin value dropped by 1.37% to $89,402.53.