The Nasdaq Composite, a tech-heavy index, has been a wild ride in 2025, rocked by President Donald Trump’s tariffs averaging 18.4% across 180+ countries. From historic rallies to sharp declines, the Nasdaq’s performance reflects investor reactions to trade policies and economic signals.
Nasdaq Performance in 2025
Trump’s April 2, 2025, tariff announcement—invoking a 10% baseline and up to 54% reciprocal rates—sparked chaos. The Nasdaq plummeted 5.97% (1,050 points) on April 3, its worst day since March 2020, as tariffs on China (54%) and others fueled recession fears, pushing the VIX to 45.31. A brief 0.1% uptick followed a false tariff pause report on April 7, but a 104% China tariff confirmation erased gains, dropping the index 2%.
The April 9 pause on non-China tariffs (90 days, 10% baseline) triggered a record 12.2% rally (1,857 points), though a 4.3% drop followed China’s 145% retaliation. By June 27, the Nasdaq hit an all-time high, driven by AI stocks like Nvidia (+24% in May), despite an 18.9% correction from February’s peak. August 2 saw a 2.2–2.5% decline ($1.1T market cap loss), triggered by a weak 73K jobs report and tariff hikes on 12 countries (e.g., Japan 25%). Year-to-date, the Nasdaq gained 1.6% by February 1, lagging the S&P 500’s 2.7%, but its 61-day streak above the 20-day moving average (longest since 1999) signals resilience.
Top-Performing Nasdaq Stocks in 2025
Despite volatility, several Nasdaq-100 stocks have soared, driven by AI, healthcare, and unique catalysts. Based on year-to-date performance as of mid-2025, top performers include:
- Gilead Sciences (GILD): Up 27% YTD, leading the Nasdaq-100 with strong HIV and oncology drug sales (+6% Q4 revenue to $7.6B). Its forward P/E of 14.8 (below the Nasdaq-100’s 27.1) and expected 32% annual earnings growth make it a value play.
- Palantir Technologies (PLTR): Up 69% YTD, fueled by 39% revenue growth ($884M) and AI platform demand. Its high forward P/S ratio suggests overvaluation, with analysts predicting 21% downside.
- Zscaler (ZS): Up 68% YTD, with 23% revenue growth ($678M) in its cloud security platform. Analysts see 1% downside due to valuation concerns.
- MercadoLibre (MELI): Up 46% YTD, driven by Latin American e-commerce growth. Analysts forecast 15% upside ($2,875 target).
- AppLovin (APP): Up significantly (exact YTD unavailable), with 39% revenue growth ($1.2B) from AI-driven advertising. Its 46% surge post-Q3 results highlights strength.
Other notable performers include Strategy Shares (STRY, +3,320% over five years to June 2025), MicroStrategy (MSTR, boosted by Bitcoin holdings), and LZ Technology (LZMH, +136.5% post-IPO). AI and healthcare stocks dominate, with Nvidia (NVDA) cooling from 2024’s 171% gain but still pivotal.
Top Underperforming Nasdaq Stocks Due to Tariffs
Trump’s tariffs, particularly on China and Canada, have hit Nasdaq stocks reliant on global supply chains.
Below are the top under performers in 2025, based on tariff-related losses:
- Apple (AAPL): Down 12% since April 2, 2025, due to heavy reliance on China for manufacturing (20% of revenue). Tariffs of 54% on Chinese imports threaten higher iPhone and Mac costs, squeezing margins.
- Tesla (TSLA): Also down 12% since April 2, with China exposure (25% of sales) and Canada’s 35% tariff impacting battery supply chains. Production costs could rise 15%, denting profitability.
- CrowdStrike (CRWD): Down significantly since February 20 (exact YTD unavailable), as tariffs disrupt cybersecurity firms’ global operations. Its high valuation (P/E 80) amplifies investor sell-offs.
- Starbucks (SBUX): Down due to China’s 84% retaliatory tariffs and local competition, with tariffs exacerbating a 5% revenue drop in China (10% of sales).
- General Motors (GM): Impacted by 35% Canadian and 54% Chinese tariffs, as GM’s joint ventures in battery production face cost hikes, with shares down 8% YTD.
Critical Analysis: Tariff Impacts and Market Dynamics
Trump’s tariffs, generating $26.6B in June 2025, aim to boost US manufacturing but disrupt tech supply chains. Exemptions for semiconductors and smartphones shield some Nasdaq giants, but higher costs for imported components (e.g., China’s 54% tariff) pressure margins for firms like Apple and Broadcom. The Nasdaq’s volatility—exacerbated by a 60% recession risk (J.P. Morgan) and China’s 84% retaliatory tariffs—challenges the establishment’s protectionist narrative.
While AI stocks like Palantir and AppLovin thrive, overvaluation risks loom, with 85% of Nasdaq-100 stocks above their 100-day moving average, a level unseen since February 2024. The top five stocks (e.g., Nvidia, Microsoft) comprise 52% of the index’s market cap, signaling concentration risk.
YTC Ventures Disclaimer: The information provided in this article is for informational purposes only and should not be considered investment advice. YTC Ventures do not guarantee the accuracy of the data or the performance of any investments mentioned. Investors should consult a qualified financial advisor before making decisions, as all investments carry risks, including the potential loss of principal.
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