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Market Rollercoaster: Nvidia And Tesla Shares Drop By 6%, Losing $220 Billion

The stock values of pioneering American companies in artificial intelligence, Nvidia and Tesla, experienced a substantial drop on Wednesday, erasing hundreds of billions from their market cap and sparking a broader tech stock sell-off.

Key Insights

Both Nvidia and Tesla saw a dip of nearly 6%, contributing to a wider decline in the major S&P 500 index by over 1%, while the tech-centric Nasdaq fell by more than 2%.

The AI chip manufacturer Nvidia removed about $170 billion in value, while electric vehicle giant Tesla shed $52 billion, bringing a total loss of $222 billion, surpassing the entire market cap of General Electric.

This price fluctuation comes amid revisions to international strategy by U.S. President Donald Trump during his early second term. Investors keep a close eye as volatility reigned, with CBOE’s VIX “fear gauge” rising 8% following announcements of imminent tariffs on auto imports and blacklisting of multiple Chinese tech companies.

Global Implications

The market response also affected Tesla and Nvidia adversely, considering their revenue reliance on international markets, including significant contributions from China.

Market Impacts On Competitors

Amidst this turbulence, other automakers like General Motors and tech firms like AMD and TSMC experienced declines of at least 2% and over 4%, respectively, indicating wider industry pressures.

Cyprus 2025 State Budget: A Detailed Analysis Of Revenue And Expenditure Implementation

Budget Overview

Cyprus recorded an 87% revenue implementation rate and a 92% expenditure implementation rate in the 2025 state budget, according to the latest Treasury report. Total revenue reached €10.20 billion, compared with €10.81 billion in 2024, while total expenditure amounted to €11.99 billion versus €12.42 billion a year earlier.

Revenue Trends And Tax Contributions

The decline in revenue was mainly linked to a €1.07 billion drop in loan withdrawals. This was partly offset by stronger tax collection. Direct taxes increased by €0.37 billion, while indirect taxes rose by €0.17 billion.

VAT revenue grew by 4% to €3.16 billion, reflecting an increase of €0.08 billion. Direct taxes rose by 6% to €3.79 billion, supported by higher personal and corporate income tax receipts.

Expenditure Dynamics And Social Investments

Overall expenditure declined slightly, largely due to a €0.84 billion reduction in loan repayments. At the same time, social benefits increased by 5% to €2.02 billion, mainly driven by an €0.08 billion rise in healthcare-related spending.

Transfers and grants rose 11% to €1.93 billion, reflecting higher contributions to the Social Insurance Fund and increased support for municipalities. Operating expenses fell by 3% to €1.12 billion, while payroll, pensions, and gratuities remained stable at €3.52 billion.

Capital Expenditure And Co-Financed Projects

Capital expenditure reached €469.3 million. Key allocations included road infrastructure (€97.3 million) and construction projects (€77.4 million), alongside investments in water systems, government buildings, and school expansions.

Co-financed projects implemented €336.3 million. Funding covered initiatives such as subsidies for childcare and nutrition programs for children under four, as well as residential energy-efficiency upgrades.

Comparative Analysis And Development Expenditure

The average state budget expenditure implementation rate over the past decade stands at 91%. Development expenditure implementation reached 81% in 2025, exceeding the ten-year average of 69%.

The data indicates continued fiscal discipline combined with increased execution of development projects and targeted social spending.

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