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We're taking a look at Nvidia and European auto stocks. First up, Nvidia, watching those shares closely moving down about two and a half percent as investors weigh the impact of tariffs on the semiconductor industry. President Trump has previously said he would impose levies on semiconductors down the road, is how he has referred to it without giving an exact time frame. And while there is a lot of conflicting reporting about what the tariffs announced today will be, one of the things that does seem to be off the table is so-called sectoral tariffs that might affect semiconductors. However, semiconductors specifically, I should say, however, obviously, if there are universal tariffs or tariffs on China or tariffs on other nations, there still could be a knock-on effect, not just for Nvidia, but for semiconductors more broadly.

And we also do have a little bit of insight into what the retaliation might look like globally with China saying announcing this morning, at least according to Bloomberg, that there are pushing Chinese firms to not invest into the United States. Is that perhaps a signal of more of this tip for tap coming moving forward, and what does that start to do to some of the chip names, uh, you know, even withstanding any geopolitical tensions that we could see with China and Taiwan, also potential risk here, um, just a lot of potential tension globally.

Right. And to be clear, most of Nvidia's chips are made not in China, but in Taiwan by Taiwan Semiconductor. Obviously, Taiwan Semiconductor is planning to expand its manufacturing capacity here in the US as well, which could take care of some of that, but definitely not all, because it has an enormous amount of production capacity at home in Taiwan. Um, but still, the other thing to note is that as we've gotten tariff headlines, whether or not the large cap tech names are directly affected, they have moved, right? They have been that risk barometer time after time when we get those headlines, and Nvidia is included, but it really extends to many of the other mega cap tech names as well.

Right. Right. Nvidia perhaps the biggest of them all when it comes to movers as of late though. We have seen obviously Tesla is also one of the biggest decliners certainly this morning as well.

And a special and a mag 7, that is a special case exactly. All right, let's talk about European auto stocks falling as President Trump's tariffs on auto imports are set to take effect. Trump announced last week that he would impose 25% tariffs on cars and car parts that are made in North America. You can see here those European automaker stocks move into the downside this morning. And what's interesting is we did have Ursula von der Leyen talking about how they hold some cards that they can utilize in order to engage in a tip for tap with the United States. Is that something that causes more pain to some of these automakers moving forward? It's something that would be interesting to monitor. Uh, on the flip side, we do have some negative news about Tesla this morning. What does that mean in terms of where people are getting their cars? Maybe there's some read through there that could be a lift to some other automakers. Um, we'll just have to see in the earnings prints moving forward.

Yeah, and again, of all the things that we don't know, we do know there are auto tariffs, and we do know they're about to go into effect. So we know at least these European automakers and the US automakers for that matter are going to have to pay these 25% tariffs on parts and cars that they are importing into the US. So we've been watching the European automakers. I'm keeping an eye on the US automakers as well. Both GM and Ford are down a little bit this morning. Um, but you know, could they end up being double tariff, some of the European automakers in particular?

We don't know. We'll find out at 4:00 p.m., hopefully.

Right. Well, and I guess that's also a question. Do we actually get any clarity today, or is it just the start of a long process of negotiations that could take months, could take years, potentially? That's what Kellyanne had said earlier as well. Um, Adam Johnson talked a little bit about this earlier this week with me, and he said that if investors really believed that auto tariffs were going to be as bad as the administration is maybe saying right now, uh, there would be a bigger sell-off in some of those auto stocks and mergers.

That's probably true, but what they believe and what the reality is might not always be the same things. They might not have priced in that worst case scenario, but that doesn't mean the worst case scenario is not happening. The markets don't always know.

Right. Right. The markets don't always know. If they did, then investors would be very wealthy all the time. And what would we talk about? So

All the time.