Why Nvidia Stock Is Sinking Today

Nvidia (NASDAQ: NVDA) stock is getting hit with another round of sell-offs in Monday's trading. The artificial intelligence (AI) hardware leader's share price was down 4.2% as of 11:45 a.m. ET. Meanwhile, the S&P 500 and the Nasdaq Composite were down 0.5% and 1.4%, respectively. The stock had been down as much as 5.5% earlier in the session.

The broader market is seeing bearish momentum amid concerns about the implementation of new tariffs and related macroeconomic risk factors, and Nvidia's valuation is moving lower due to the pullback. The stock is now down roughly 22% across 2025's trading and 30% from its high.

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Nvidia stock tumbles again on tariff fears

President Trump said yesterday that his administration will not be offering other countries softer versions of the reciprocal tariffs set to go into effect on April 2. Investors had previously hoped that the president would carve out significant exceptions to the new import taxes on foreign goods, but it seems the administration is poised to take a hardline stance. The tariff outlook has raised fears that the U.S. and other leading global economies could slip into recession this year, and that's prompting big valuation pullbacks for Nvidia and other growth stocks.

What's next for Nvidia?

When it comes to influencing investor sentiment and shaping momentum for the broader market, Nvidia is probably more influential than any other stock right now. With the Trump administration set to announce new artificial intelligence policies that are expected to be beneficial for the tech industry on May 15, investors could be getting some good news before long. On the other hand, macroeconomic dynamics will also continue to shape Nvidia's stock performance, so shares could continue to see high levels of volatility in the near term.

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Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nvidia. The Motley Fool has a disclosure policy.