Why is Nasdaq Down Today? The Nasdaq Composite is volatile as of May 24, 2025, and new evidence suggests a possible decline. According to Nasdaq.com, the Nasdaq has had difficulty regaining its footing after a stormy April that saw an 11% drop brought on by President Trump’s “Liberation Day” tariffs. On May 21, 2025, the Nasdaq closed at 19,142.71, down 0.4% due to worries over a comprehensive tax and spending measure. Indian investors are keeping a close eye on the country’s 2 crore+ demat accounts and 100 crore+ UPI users who utilise Groww or Zerodha to access international markets. Tech-heavy Nasdaq equities are being squeezed by rising U.S. Treasury rates (30-year at 5.084%) and a $1.9 trillion U.S. deficit prediction, while tax policy discussions—including Trump’s planned exclusions for tips, overtime, and Social Security—are forcing people to reconsider their personal financial tactics.
This article examines the reasons for the Nasdaq’s current decline, its effects on Indian portfolios, and tax planning techniques to manage the uncertainties of 2025. It is specifically written for Indian investors in Tier-2 cities (Patna, Jaipur) and metro areas (Mumbai, Delhi). We offer actionable insights for salaried professionals (₹5–15 lakh/year), HNIs, and novices to optimise taxes and investments using platforms like ClearTax and Screener.in, leveraging the Sensex at 82,530.74 and India’s $5 trillion economic objective.
Why is Nasdaq down Today? Important Factors in May 2025
The 2,500+ stocks that make up the Nasdaq Composite—which includes tech behemoths like Apple, Nvidia, and Microsoft—are susceptible to changes in the macroeconomic environment. Current mood and statistics on X point to a number of reasons for the possible decline of today:
Treasury Yields Are Rising:
- According to an X post by @grok, the 30-year Treasury yield touched 5.084%, which put pressure on Nasdaq’s growth stocks by increasing the cost of financing for IT companies. According to Investopedia, higher yields make bonds more appealing and draw money away from stocks.
- Context: According to Economic Times, Indian investors who purchase Nasdaq ETFs (such the Motilal Oswal Nasdaq 100) through Upstox may see a decline in returns when U.S. rates increase.
Concerns about the US Fiscal Deficit:
- According to Investopedia, investors are concerned about a $1.9 trillion U.S. deficit anticipated for FY25, which is being driven by Trump’s “One Big Beautiful Bill” (passed House, May 22, 2025). The spending and tax cuts in the measure may cause deficits to balloon, which would raise rates and depress equities.
- Context: According to the RBI, Indian HNIs in Mumbai keep an eye on how U.S. policies affect international markets, with ₹6.81 lakh crore in digital transactions.
Uncertainty in Tax Policy:
- SALT deductions ($30,000 ceiling) are a point of contention for Trump’s tax program, which includes extending the 2017 Tax Cuts and Jobs Act (TCJA) and exempting gratuities, overtime, and Social Security payments, according to Nasdaq.com. According to the Tax Policy Centre, this might lower disposable income and diminish investment on technology.
- Context: According to Forbes India, over 4 million Indian expatriates in the US modify their tax arrangements through ClearTax, which affects investments linked to the Nasdaq.
The aftermath of tariffs:
- According to Wikipedia, the “Liberation Day” tariffs in April (10% baseline, 245% on China) caused an 11% decline in the Nasdaq over the course of two days. Nasdaq.com reports that even if a 90-day halt reduced losses, persistent U.S.-China tensions—including 125% Chinese tariffs—disturb IT supply chains.
- Context: According to Business Standard, tech workers in Bangalore who own Nasdaq stocks through Groww experience volatility.
Concerns about AI and Tech Spending:
- Although hyperscalers like Amazon and Microsoft estimated spending between $80 and $100 billion on AI infrastructure, the U.S. Bank claims that low-cost AI models from China’s DeepSeek lower investment demands and put pressure on tech equities.
- Context: According to Livemint, Indian IT companies (TCS, Infosys) that depend on U.S. clients are vulnerable to margin threats.
Market Sentiment:
- According to Nasdaq.com, the VIX fear indicator increased to 17.24 (May 19, 2025), indicating caution. According to @money_cruncher, X postings show a range of opinions, with some mentioning concerns about tax bills.
- Context: According to AMFI, retail investors in Delhi use Angel One to watch the VIX using TradingView.
Context: Indian investors use ETFs or ADRs on the NSE to access the Nasdaq, but volatility forces tax and portfolio reviews, according to the RBI, despite the country’s 17,000+ SBI branches and 2 crore+ SIP accounts.
Effects on Indian Investors
The decline of the Nasdaq has an impact on Indian portfolios:
- Nasdaq ETFs: According to Economic Times, funds such as Motilal Oswal Nasdaq 100 (₹1,600/share, May 2025) see 5–10% declines.
- Tech Stocks: According to Upstox, Indian holdings in Apple and Nvidia (via Zerodha’s U.S. stock feature) depreciate.
- IT Sector: According to Moneycontrol, exposure to U.S. clients causes stock declines of 2% to 3% for Indian IT companies (TCS, Wipro).
- Currency Impact: According to Business Standard, rupee returns on Nasdaq investments are decreased by a higher US currency (₹84/USD).
Why Should Taxes Be Rethought? According to the Tax Policy Centre, U.S. tax reforms (such as the $1.5 trillion over ten years in Social Security exemptions) may lower consumer spending, which would affect Nasdaq companies. Tax optimisation is necessary for Indian investors, particularly non-resident Indians, to offset losses.
Tax Planning Techniques for Indian Investors in 2025
Here are some simple tax techniques for Indian investors (salary: ₹5–15 lakh/year) to safeguard their capital in light of Nasdaq volatility and U.S. tax discussions. These tactics are designed for budgets of ₹10,000–₹50,000/month.
1. Make Use of Indian Tax Deductions
- Section 80C: According to ClearTax, you may save ₹46,800 (30% slab) by investing ₹1.5 lakh annually in either PPF (7.1% yield) or ELSS (HDFC ELSS Tax Saver, 15% CAGR).
- According to Paisabazaar, Section 80D: Health insurance premiums (₹25,000 for the individual and ₹50,000 for the parents) save ₹23,400.
- Example: ₹10 lakh in salary per year, ₹1.5 lakh in ELSS plus ₹25,000 in insurance, equals ₹70,200 in tax savings, which is used to finance the purchase of Nasdaq ETFs.
- According to Forbes India, use ClearTax’s ITR e-filing to make automatic deductions.
Context: According to the RBI, families in Mumbai (rent: ₹30,000/month) create PPF accounts through SBI outlets.
2. Optimise exposure to U.S. taxes (for NRIs)
- Foreign Tax Credit: According to ClearTax, you can save between ₹10,000 and ₹20,000 by claiming credit for U.S. taxes on Nasdaq earnings (15% withholding) against your Indian tax bill under the DTAA.
- SALT Deduction: According to the Tax Policy Centre, non-resident individuals (NRIs) in high-tax jurisdictions like California and New York optimise their $30,000 SALT deductions.
- For instance, an NRI with ₹20 lakh in U.S. income uses Upstox to reinvest ₹1 lakh in Nasdaq ETFs after saving ₹1 lakh through credits.
- According to Forbes India, file U.S. returns through H&R Block India (₹5,000–₹10,000).
Context: According to AMFI, Hyderabad-based NRIs invest in the US through Groww’s NRI platform.
3. Tax Losses from Harvest
- How: According to Moneycontrol, sell Nasdaq ETFs or equities (like Nvidia) at a loss of ₹50,000 to offset capital gains of ₹1 lakh, saving ₹15,600 (15% LTCG tax).
- For instance, according to @money_cruncher, sell Motilal Oswal Nasdaq 100 (loss of ₹50,000) and purchase an equivalent ETF (ICICI Nasdaq 100) to preserve exposure.
- According to Economic Times, use Zerodha’s tax-loss harvesting tool.
Context: According to the NSE, professionals in Bangalore (paying ₹12 lakh annually) use Angel One to make trades.
4. Spread Out Your Investments
- Why: According to Wikipedia, the Nasdaq’s 11% decline in April 2025 demonstrates technological hazards.
- Method: According to ClearTax, allocate 10% to Nasdaq ETFs, 30% to Indian equities (HDFC Bank, Reliance), 30% to mutual funds (Parag Parikh Flexi Cap), and 30% to FDs (SBI: 7.25%).
- An illustration of a ₹50,000 budget would include ₹15,000 Nifty 50, ₹15,000 SIP, ₹15,000 FD, and ₹5,000 Nasdaq ETF.
- According to Forbes India, track using Screener.in.
Context: According to AMFI, joint families in Uttar Pradesh diversified through CSC facilities for objectives including education (₹5–15 lakh).
5. Establish an Emergency Fund
- How: To prevent forced Nasdaq sell-offs, save ₹5,000 to ₹10,000 each month in liquid funds (SBI Liquid Fund, 7% yield) to cover three to six months’ worth of expenses (₹1 to 2 lakh), according to Paisabazaar.
- To guard against market declines, for instance, ₹5,000 every month for a year equals ₹60,000.
- Advice: In accordance with Business Standard, begin SIPs on Groww.
Context: According to RBI, PNB’s 7,000+ branches are used by rural people in Bihar for FDs.
6. Keep an eye on US tax reforms
- Follow: TCJA exclusions (tips, Social Security) and extensions (doubled standard deduction, reduced rates) through Tax Policy Centre, as they affect U.S. consumer spending and Nasdaq companies, according to Nasdaq.com.
- According to Forbes India, for worldwide tax updates, follow CA Rachana Ranade on YouTube.
Context: According to AMFI, rural investors in Rajasthan benefit from Hindi applications like Angel One.
7. Speak with Professionals
- How: According to ClearTax, hire SEBI-registered consultants for tax and portfolio planning through Vakilsearch (₹2,000–₹5,000).
- Example: Using ELSS and credits, the advisor optimises a ₹10 lakh portfolio while saving ₹50,000 in taxes.
- According to Economic Times, use Moneycontrol’s Advisor Directory.
Context: According to the RBI, metro professionals in Delhi seek advice from SBI’s 17,000+ outlets.
The Risks of Ignoring Nasdaq Volatility and Tax Planning
- Portfolio Losses: According to Wikipedia, a recurrence of the Nasdaq’s 11% April decline may deplete holdings worth ₹1–2 lakh.
- Tax Penalties: According to ClearTax, there is a ₹5,000 punishment for missing the July 31, 2025, ITR deadline.
- Lost Savings: According to Paisabazaar, unclaimed 80C/80D deductions cost between ₹50,000 and ₹70,000 a year.
- Financial Stress: According to NIMHANS, 60% of Indian investors express worry over market declines.
- Lost Opportunities: According to Forbes India, inadequate tax preparation postpones objectives like retirement or residences (₹50 lakh).
Answers:
- Use TradingView to follow the Nasdaq.
- Use ClearTax to file ITRs.
- According to Reddit, join r/IndiaInvestments for advice.
Context: The RBI reports that rural communities in Gujarat rely on SBI’s 7,000+ ATMs for cash and require Hindi resources such as Groww.
Resources and Tools
- Market trackers: for Nasdaq updates include TradingView, Screener.in, and Moneycontrol.
- Trading platforms: for stocks and ETFs include Groww, Upstox, and Zerodha.
- Tax Tools: Paisabazaar for ITRs and deductions, ClearTax.
- Calculators: according to BankBazaar, the Tax Calculator.
- Learning resources: include YouTube (Pranjal Kamra), SEBI, and NSE India.
- Community: CSC centres, Zerodha University, and r/IndiaInvestments.
Context: According to the RBI, accessibility is guaranteed by more than 17,000 bank branches and 100 crore UPI customers.
Conclusion
According to Investopedia, the May 2025 Nasdaq decline, which was fuelled by 5.084% Treasury rates, a $1.9 trillion U.S. deficit, and tax reform discussions, warns Indian investors to exercise care. Protect your wealth by using Section 80C (₹1.5 lakh, saves ₹46,800), harvesting losses via Zerodha, and diversifying with Indian equities and FDs, according to ClearTax, with the Sensex at 82,530.74 and 2 crore+ demat accounts. While all investors keep an eye on Trump’s tax bill through Tax Policy Centre, NRIs should use H&R Block India to seek U.S. tax credits. Take action right away to reconsider your tax strategy, protect your funds, and manage Nasdaq volatility for objectives like retirement or school (₹5–15 lakh)!
Call to Action: Share your tax plan in comment, submit ITRs on ClearTax, and track the Nasdaq on Screener.in!
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