Nvidia’s slump and Trump’s tariffs rocked markets

U.S. President Donald Trump said Thursday he would give tariffs on Canada and Mexico, which are temporarily paused, the go-ahead, while separately threatening on Wednesday to slap a 25% levy on the European Union.

Those are some of the U.S.’ closest allies and biggest trade partners. Expect geopolitical friction and economic fallout if the tariffs are implemented.

Some of the repercussions might have begun already. Jobless claims in the U.S. for the week ended Feb. 22 rose more than expected and were the highest since early October. Big Tech companies, such as Google, Meta and Microsoft, have announced layoffs this year — while such cost-cutting measures may not have been a direct response to tariffs, they are an early sign of what things could look like when companies try to deal with increased import prices.

Nvidia might also be staring down the barrel of a gun. Most of Nvidia’s advanced artificial intelligence chips are manufactured by TSMC in Taiwan. Trump, on his campaign trial, has complained that the island stole the U.S.’ chip business, and said he would impose tariffs on chips from Taiwan.

Shares of Nvidia plummeted Thursday after the chipmaker announced earnings Wednesday, wiping out billions in market capitalization. If tariffs on Taiwan are implemented as well, the picture will look much uglier, and not just for the chipmaker.

Nvidia loses $273 billion in value
Nvidia shares plunged 8.5% on Thursday, wiping out $273 billion in value and giving the company a market capitalization of $2.94 trillion. That makes Apple the only member of the $3 trillion club. So far in 2025, Nvidia shares have lost 10% of their value, as the company faces investor concerns about export controls, tariffs, more efficient artificial intelligence models and an overall slowing pace of growth.

Trump says tariffs will go ahead
U.S. President Donald Trump on Thursday said in a Truth Social post on Thursday morning that his proposed 25% tariffs on Mexico and Canada will go into effect March 4. He also said China will face an additional 10% tariff — on top of that the country already faces — on the same date. Reciprocal tariffs, which will apply to U.S.’ global trade partners, will kick in April 2, Trump added. Meanwhile, Trump threatened to impose a 25% tariff on the European Union.

Markets slump over tariffs and Nvidia
U.S. markets were jolted on Thursday by tariff jitters and a plunge in Nvidia shares. The S&P 500 retreated 1.59%, the Dow Jones Industrial Average dropped 0.45% and the Nasdaq Composite fell 2.78% The pan-European Stoxx 600 index lost 0.46%, weighed down by the auto sector falling 4% as it reacted to Trump’s threat of tariffs on the EU. Shares of aerospace and defense firm Rolls-Royce jumped 16% on upbeat guidance.

Higher-than-expected jobless claims
U.S. jobless claims for the week ended Feb. 22 totaled a seasonally adjusted 242,000, up 22,000 from the previous week’s revised level and higher than the Dow Jones estimate for 225,000, according to a U.S. Labor Department report Thursday. The level of claims matched the highest since early October 2024 and comes amid questions over broader economic growth and worrying signs in recent consumer sentiment surveys.

Google cuts jobs
Google told staffers this week in its “People Operations,” the company’s human relations division, and its cloud unit that it is planning layoffs as a part of internal reorganizations, CNBC has learned. Some affected employees’ roles in Google’s cloud unit are being relocated to India and Mexico City, according to sources and internal correspondence viewed by CNBC. The number of layoffs is unclear.

[PRO] Gold might hit $3,000, analysts say
Central banks from around the world have been scooping up gold in recent years, lifting the precious metal to record levels. Now, with persistent geopolitical tensions, along with inflation and trade concerns, bullion could soon reach $3,000 for the first time, analysts think. There are a few ways for investors to gain exposure to gold, with each having their own fees and risks.

Qatar attracts VC fund managers to Doha with its $1 billion ‘fund of funds’

The Qatar Investment Authority’s $1-billion fund of funds program — which invests in both international and regional VC funds — is designed to bolster investments in areas such as technology and health care, as Qatar looks to diversify away from its dominant oil and gas industry.  

Now, it’s accepted its first group of venture capital fund managers. B Capital, a tech-focused firm led by Facebook co-founder Eduardo Saverin, is among the group of VCs set to launch in Doha, opening its first Middle East office in the Qatari capital. Raj Ganguly, co-CEO of B Capital, hailed the Gulf state’s approach to artificial intelligence, and its support for the sector, as of particular interest.