Nvidia, Tesla lead tech stocks lower as Trump trade war threats rattle market

Group 1 - Major tech stocks, including Nvidia, Tesla, and Amazon, experienced declines due to President Trump's trade war threats against Europe, with Nvidia and Broadcom dropping over 3% and Tesla and Amazon sinking nearly 3% [1][3] - Oracle, an AI cloud provider, saw its shares decline around 4%, while Nvidia-backed AI cloud firms Nebius and CoreWeave shed over 6% and 4%, respectively [2] - The Nasdaq Composite index fell by 1.7%, leading major indexes down as concerns about the potential impact of Trump's threats on US-European relations grew ahead of the World Economic Forum [3] Group 2 - Investors are rotating out of riskier tech stocks during market downturns, reflecting unease over a potential AI bubble, as noted by analysts [4] - Despite a positive outlook on the AI market from TSMC, the Magnificent Seven tech stocks have collectively dropped more than 3% in January, underperforming major indexes [5] - Analysts highlighted concerns over the returns from significant AI-related capital expenditures, with some viewing the recent pullback as a buying opportunity, anticipating further insights into how tech giants will monetize their AI investments as earnings reports approach [6]