ZACKSยท2025-04-07 18:01Group 1 - President Trump enacted a two-step tariff strategy starting April 5, imposing a baseline tariff of 10% on imports from various countries [1] - The stock market reacted negatively, particularly the Nasdaq Composite, which fell 5.8% on April 4 and was down 22% from its December record, entering a bear market [2][3][10] - Major tech stocks like Apple, NVIDIA, and Tesla experienced significant declines due to their exposure to China and the impact of retaliatory tariffs [4][12] Group 2 - Concerns are rising that the investment boom in AI infrastructure is outpacing actual demand, with Alibaba's co-founder warning about oversupply [7] - Microsoft has canceled certain data center projects despite earmarking $80 billion for expansion in 2024, indicating potential oversupply issues [7] - Despite bearish sentiment, major tech companies are committed to over $300 billion in capital expenditures, suggesting potential buying opportunities [8] Group 3 - The Nasdaq 100's price-to-earnings (P/E) ratio has declined from 41.24X in early September 2024 to 29.27X at the end of March 2025, indicating valuation corrections [9][11] - The Nasdaq-100-based ETF Invesco QQQ Trust shows a bullish signal as the 50-day moving average has risen above the 200-day moving average [13] - Investors with a strong risk appetite may consider Nasdaq-100-based ETFs like Invesco QQQ Trust, which currently holds a Zacks Rank 3 (Hold) [14]