US president Donald Trump on Saturday announced an additional tariff of 10% on imports from China and 25% on those from Mexico and Canada to the apparent surprise of investors, who had underpriced such risk. The tech-heavy Nasdaq ( ^IXIC) was off more than 2% Monday morning. Nvidia stock pared losses and ended the day down 2.8%.

On Jan. 27, Nvidia ( NVDA -3.67%) fell 17%, erasing over $590 billion from its market cap. It marked the greatest single-day market-cap destruction for a company in U.S. stock market history. While the growth stock recovered nearly half of those losses the following day, there are still lessons to be learned from this historic market event.

Nvidia’s (NVDA) stock price is down at the time of writing as it extends last week’s declines. This downturn was triggered by investors