Stocks

Today’s Stocks to Watch: Tesla and Nvidia

February 3, 2025 OnEquity

Key Points to Watch Out For:

  • Shares of Tesla, GM, and Ford drop due to the impact of new tariffs.
  • Nvidia and Apple decline amid potential restrictions on Chinese imports.
  • Companies with exposure to Mexico and Canada, including Constellation Brands, lose ground in the market.

Tesla (TSLA) and Ford (F) Drop After New Tariffs

Shares of Tesla, General Motors, and Ford suffered significant losses in pre-market trading. GM fell more than 6%, while Tesla declined 3%. The automotive sector is among the hardest hit by the newly imposed 25% tariffs on imports from Mexico and Canada.

Volkswagen (VOW3) and Toyota (TM) Decline Due to Global Impact

Automakers Volkswagen, Stellantis, Toyota, and Nissan also saw declines in international stock markets. Many of these companies manufacture vehicles in Mexico and Canada, leaving them vulnerable to the new tariffs.

Nvidia (NVDA) and Apple (AAPL) Decline Amid China Tariff Concerns

Nvidia and Apple shares plummeted following the announcement of a possible 10% tariff on Chinese imports. Additionally, Trump has announced new restrictions on semiconductor exports, which has negatively impacted companies like TSMC (TSM), ASML (ASML), and ARM Holdings (ARM). These companies rely heavily on Chinese manufacturing and demand, making them particularly vulnerable to escalating trade tensions.

Constellation Brands (STZ) Loses 6% in Pre-Market Trading

Shares of Constellation Brands fell 6% in pre-market trading. The company, which imports Modelo and Corona beers from Mexico, faces potential cost increases due to the newly imposed tariffs on Mexican goods. Investors are concerned that rising costs could impact profit margins and consumer pricing.

Lululemon (LULU) and MicroStrategy (MSTR) Also Decline

Lululemon’s stock dropped as investors reacted to concerns over its supply chain exposure to tariffs. The company sources a significant portion of its materials and finished goods from overseas markets, including China and Mexico.

Meanwhile, MicroStrategy (MSTR) saw a 5% drop, following a decline in the cryptocurrency market. The company’s substantial Bitcoin holdings have made its stock highly sensitive to fluctuations in digital asset prices. Similarly, Coinbase (COIN) and Robinhood (HOOD) also experienced declines in pre-market trading as crypto-related stocks suffered from market uncertainty.

Market Outlook

Investors remain cautious as they assess the broader impact of tariffs on corporate earnings and global trade. The upcoming Federal Reserve meeting and economic data releases will be closely watched for any signals regarding monetary policy adjustments in response to inflationary pressures stemming from trade restrictions.

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