The NASDAQ index saw a rise of nearly 100 points earlier in the session, but it has now fallen. Currently, the NASDAQ is down by 21 points, or 0.10%, at 21,429.93. At the same time, the S&P index is down by 0.12%, losing 4-7.73 points after a previous gain of 17.80 points. The Dow industrial average, which had increased by 97.42 points, is now down 200.62 points, or 0.45%. Major tech stocks are also struggling, with Apple down 0.78%, Amazon down 0.80%, and Meta down 0.21%.

Nvidia And AMD Tariffs

Nvidia started the day down $2.45 but has now climbed to a gain of $0.21. Both Nvidia and AMD have announced a 15% tariff on chips exported to China. Even with this news, AMD’s stock has risen slightly by 0.28%. The NASDAQ’s inability to maintain its earlier gains may indicate market fatigue. Sellers are reappearing after a strong rally, which might mean the easy profits have been made for now. This type of intraday reversal, especially after good performance in July 2025, often leads to a period of increased volatility. The CBOE Volatility Index (VIX) has shown this unease, climbing from summer lows around 15 to just over 19. This increase suggests traders are starting to buy protection against a possible downturn. In this environment, long volatility plays like VIX calls or straddles on major stocks become more appealing.

Market Volume And Volatility

It’s concerning to see market leaders like Apple, which fueled much of last week’s gains, trading lower. The new 15% tariffs on certain chip exports to China are a specific challenge for Nvidia and AMD. We should keep an eye on continued weakness in these key stocks as an indicator for the broader market’s direction. Remember, August has historically been a month with lower trading volumes and unexpected volatility. With the key Consumer Price Index (CPI) report coming in two weeks and the Federal Reserve meeting scheduled for September, many investors are cautious about making large new investments before getting more clarity on inflation. This uncertainty is something we can navigate. Recent data shows that the equity put/call ratio has risen to 1.15, indicating that more bearish put options are being traded than bullish calls. This suggests we should think about buying protective puts for our long positions in indexes like the QQQ. Speculative traders might even want to consider puts on tech giants that are starting to show signs of weakness. Create your live VT Markets account and start trading now.

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