Breakfast | US stocks plummet, fear index UVIX surges 11%, NVIDIA crashes 8.5%

Market Overview

Tariff threats have boosted the dollar and severely impacted U.S. stocks, with the Nasdaq falling nearly 3%, and NVIDIA dropping 8.5%, marking the largest single-day decline since the DeepSeek shock. The 2x Long VIX Futures ETF (UVIX) surged 11%; Tesla fell 3%, marking its sixth consecutive decline.

The China concept index halted its two-day rise, with Alibaba closing down nearly 2%, Li Auto down 3%, while Nio and XPeng rose over 1%. The European automotive sector fell nearly 4%.

The 10-year U.S. Treasury bond saw its first decline this week, moving away from its yearly high. Following Trump's mention of tariffs, the Mexican peso, Canadian dollar, and euro hit at least two-week lows, while the dollar index reached a one-week high, and the offshore yuan fell over 300 points during the day, approaching 7.30. Bitcoin dropped over $3,000 during the day, falling below the $84,000 mark.

Crude oil moved away from its yearly low, with U.S. oil rebounding nearly 3% at one point. Gold fell nearly 2% during the day, with futures closing at a nearly three-week low.

NVIDIA Opens High but Closes Low, Plummeting 8.5%

Morgan Stanley: NVIDIA's earnings report is not perfect, but the "growing pains" of the transition period are fading, and Blackwell is about to see a full explosion. Demand for Blackwell remains strong and will continue until the end of the year, and the pressure on gross margins is only temporary. AI spending is not a bubble but cyclical, and market enthusiasm will reignite in the next 6-9 months.

Duan Yongping: Preparing to start selling NVIDIA puts; NVIDIA is a very good company. "I want to try hard to see if I can understand whether NVDA can become my investment target."

When Duan Yongping starts buying NVIDIA, it means NVIDIA has reached a new stage. The competitive landscape for hardware, especially profit share, may be much better than for applications. NVIDIA's current price corresponds to a 20x PE for 2026, making it one of the cheapest in the Mag7. And this may just align with the appetite of long-term value investors.

"Tech Seven Sisters" All Suffer Losses

NVIDIA closed down 8.48%, marking its worst single-day performance since the January DeepSeek shockwave.

Tesla fell 3.04%, and Google A dropped 2.45%. Microsoft fell 1.8%.

Amazon dropped 2.62%, with reports stating that after Microsoft, Amazon also officially announced quantum computing chips, with new breakthroughs potentially reducing error correction costs by up to 90%.

Meta fell 2.29%, with reports indicating that Meta is in talks with private equity firm Apollo for $35 billion in data center financing. Meta plans to release a separate Meta AI app in the second quarter, hoping to compete with OpenAI's ChatGPT.

Apple fell 1.27%, with reports suggesting that Apple's first foldable phone may be released in the second half of 2026.

Chip Stocks Plummet

The Philadelphia Semiconductor Index closed down 6.09%. The NVIDIA 2x Long ETF fell 17.14%. Intel closed down 1.83%. Analog Devices fell 8.46%, Wolfspeed dropped 3.91%, Micron Technology fell 6.03%, Broadcom dropped 7.11%, TSMC ADR fell 6.95%, and Qualcomm dropped 4.73%.

AI concept stocks broadly declined. AMD closed down 15.97%. Oracle fell 4.47%. Dell Technologies dropped 6.76%, briefly rising 4.79% after hours BullFrog AI fell 5.34%, Palantir fell 5.08%, and AppLovin fell 3.18%. Snowflake closed up 4.51%. Salesforce fell 4.04%.

“Trump Trade” Continues to Cool, Tesla and Bitcoin Continue to Decline

Bitcoin has fallen 15% in a month, with the cryptocurrency market experiencing a "stampede," resulting in $800 billion "vanishing into thin air." Bitcoin ETFs saw a capital outflow of $1 billion in a single day, with buyers of Bitcoin ETFs accumulating losses of $1.3 billion since the U.S. elections.

Tesla fell 3%, marking its sixth consecutive decline.

After Google and Microsoft, Amazon Officially Announces Quantum Computing Chip

Amazon's cloud division AWS has developed the company's first quantum computing chip, Ocelot, claiming it can reduce the cost of quantum error correction by up to 90%. Researchers used an innovative design called cat qubits, combining cat qubit technology with other quantum error correction components onto a single microchip, which can be produced in a scalable manner using microelectronics industry processes. If the Ocelot architecture significantly reduces the resources required for error correction, the cost of quantum computing chips could be reduced by 80% compared to existing methods, potentially bringing the realization of quantum computers up to five years earlier.

“NVIDIA's Favorite” AI Cloud Provider CoreWeave Applies for IPO Within a Week

Raising $4 billion, with a valuation exceeding $35 billion.

NVIDIA's favoritism towards CoreWeave has reached a level of "treating it as one's own"—after receiving investment from NVIDIA, CoreWeave became a direct cloud computing power supplier for NVIDIA, with even Microsoft ordering cloud computing power from them.

Analysts believe that CoreWeave's success helps NVIDIA diversify its operational risks and effectively counter potential competitors in the chip industry, namely Amazon and Google.

Xiaomi Targets the High-End Market, Electric Vehicle SU7 Ultra is the Fastest on Earth, Priced at 529,900 Yuan

Xiaomi's SU7 Ultra performance is comparable to million-level supercars, with smart driving supporting roaming positioning parking and ultra-narrow garage exit. Lei Jun also praised Porsche, stating that "international big manufacturers have a vision." The Xiaomi 15 Ultra features a 1-inch super-large main camera with 200 million pixels and a periscope telephoto lens, while also supporting offline calls; all home appliance products support national subsidies. According to Xiaomi Auto, the SU7 Ultra sold over 10,000 units within 2 hours of its launch