Key Takeaways
- Nvidia (NVDA) declined 3% Friday with an additional 1% drop in Monday premarket trading amid Middle East tensions
- TSMC experienced a 4.2% decline, while SK Hynix and Samsung recorded losses of 9.5% and 7.8% in their respective markets
- Brent crude briefly reached $119 per barrel, marking the highest levels since 2022 as oil surged past $100
- Last week saw the Dow experience its largest weekly decline since April 2025, losing approximately 3%
- G7 ministers convened Monday to evaluate releasing IEA petroleum reserves
Shares of Nvidia experienced a 3% decline Friday, with losses extending into Monday’s premarket session as escalating Middle East tensions triggered a widespread market retreat driven by soaring oil prices and growing concerns about semiconductor supply chain stability.
Premarket trading showed the stock at $176.60, reflecting a 0.8% decline. Through Friday’s closing bell, the stock has fallen 4.7% year-to-date.
The semiconductor sector faced widespread pressure, with AMD declining 3.52% and Broadcom falling 0.69% during premarket hours.
Industry analysts point to a gradual erosion of profitability rather than immediate production shutdowns. Rising energy and logistics expenses pose the primary threat to chip manufacturers’ margins.
“For the technology sector the immediate risk is not a direct interruption in semiconductor production but a broader inflationary impact through energy and transportation costs,” wrote Brad Gastwirth of Circular Technologies. “Semiconductor fabrication facilities are extremely energy intensive and any sustained increase in electricity or fuel prices can affect manufacturing economics.”
TSMC, holding the position as the globe’s dominant chip producer, saw shares fall 4.2% during Monday trading in Taiwan. The manufacturer consumes approximately 9% of Taiwan’s entire electricity supply, with natural gas serving as the primary power generation source for the island.
South Korean semiconductor companies experienced steeper losses. SK Hynix plummeted 9.5% while Samsung Electronics dropped 7.8% in Seoul. Both companies serve as critical memory suppliers for Nvidia’s products.
Crude Price Surge Rattles Market Futures
Oil prices jumped approximately 25% late Sunday, with brief peaks at $119 per barrel before moderating. WTI crude traded near $103 while Brent remained above $107 — both maintaining roughly 15% gains for the session.
The dramatic increase followed production cuts by major crude-producing nations, compounded by significant disruptions near the Strait of Hormuz. Kuwait announced production reductions, while Iraqi output reportedly plunged approximately 70%.
Dow futures initially dropped over 1,000 points overnight before recovering somewhat. Both S&P 500 and Nasdaq 100 futures showed declines of 1% and 1.1% respectively Monday morning.
Futures experienced partial recovery following reports that G7 ministers would discuss coordinated releases from IEA petroleum reserves. Three countries, including the United States, were reported as supporting the initiative.
The previous week delivered challenging results across major indices. The Dow recorded approximately 3% in losses — representing its most significant weekly decline since April 2025 tariff concerns. The S&P 500 retreated about 2% while the Nasdaq concluded with losses exceeding 1%.
Outlook for Nvidia Moving Forward
Trump’s statement describing elevated oil costs as “a very small price to pay” for security created market anxiety Sunday, though discussions regarding IEA reserve releases provided some relief Monday.
Market participants are closely monitoring Wednesday’s Consumer Price Index release and Friday’s PCE index data. These reports will likely show limited reflection of the recent oil price spike.
Nvidia’s upcoming GTC conference spans March 16–19, where the company plans to unveil new hardware offerings. Broader macroeconomic concerns may overshadow product announcements.
Monday premarket trading placed NVDA at $176.60.
