On April 9, 2025, global financial markets reeled from fresh sell-offs in tech stocks, led by a sharp decline in the Nasdaq Composite, which officially entered bear market territory, having fallen 25% from its record high of 20,204.58 on December 16, 2024. The index closed at 15,267.91, down 2.15%, marking a major psychological and technical breakdown in investor confidence.

This drop was largely driven by escalating concerns of a global trade war, particularly between the United States and China, and further fueled by weakness in AI and data center-related stocks.

Nvidia’s 37% Plunge From Peak Sparks Broader Panic

Leading the declines was Nvidia, the bellwether of the AI chip sector, whose stock fell 37% from its 52-week high of January 7, 2025. The chipmaker had seen soaring demand for its AI processors, but the rally has sharply reversed, with the stock closing at $96.3 per share, down 1.37% on April 8. This collapse in one of the market’s most valuable tech companies triggered broad-based risk-off sentiment across global indices.

Indian Data Center Stocks Suffer Heavy Losses

Following the cues from Wall Street, Indian markets mirrored the carnage, with data center and AI-related stocks seeing steep intraday losses:

• Anant Raj Ltd, primarily a real estate developer that recently expanded into data centers and AI solutions through its subsidiary Anant Raj Cloud, saw its stock drop 5.18% to an intraday low of ₹412.6 on the NSE. It later trimmed some of the losses, trading with a 3% cut around 2 PM.

  The company had gained attention in July 2024 for partnering with Google to develop AI-powered infrastructure services, aimed at improving efficiency, security, and productivity across enterprises.

• Black Bbox fell 7.08% to hit a low of ₹320.85 per share, reflecting investor nervousness around the viability of data center profitability in the current climate.

• E2E Networks and Netweb Technologies also declined by 4.43% and 3.14%, respectively.

AI Disruption from China Fuels More Anxiety

These stocks had previously suffered in January 2025, after the rise of DeepSeek, a low-cost AI startup from China, raised fears of a price war and erosion of AI chip margins globally. DeepSeek’s rapid emergence threatened the dominance of entrenched players like Nvidia and contributed to global AI stock underperformance.

Tariff Escalation Intensifies Trade Fears

The biggest trigger in the latest market fall came from renewed trade hostilities between the world’s two largest economies. The United States slapped a 104% tariff on Chinese goods, a move seen as retaliatory under former President Donald Trump’s renewed protectionist policies.

China responded with its own set of tariffs, imposing a 34% import duty on American products, further inflaming tensions and clouding prospects of a diplomatic resolution.

This tit-for-tat escalation has rattled global markets, particularly those dependent on supply chains, tech infrastructure, and cross-border cloud services.

Wall Street Futures Hint at Temporary Stabilization

On Wednesday (April 9) afternoon (India time), Wall Street Futures showed some signs of recovery, following China's public statement urging the US to resume trade dialogue. However, a formal response from the White House is still pending, keeping market participants on edge.

What Lies Ahead

With the Nasdaq in bear territory, Nvidia facing valuation pressures, and data center stocks like Anant Raj and Black Bbox getting battered, the outlook remains cautious. Investors are advised to:

• Monitor upcoming US-China trade developments closely.

• Watch for signs of AI pricing wars sparked by startups like DeepSeek.

• Assess how global companies recalibrate capital expenditure and cloud investments amid higher tariffs and supply chain uncertainties.

The data center and AI sector, once seen as safe bets for the next tech wave, are now caught in a web of geopolitical, macroeconomic, and technological competition risks.

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