U.S. Stocks Drop Amid Chip Export Restrictions and Tariff Worries
U.S. stocks took a hit on Wednesday. the S&P 500 fell 2.2%, and the Nasdaq Composite dropped 3%. The Dow Jones Industrial Average also declined by 1.7%.This downturn was triggered by two major factors: new chip export rules and tariff concerns.
Nvidia’s stock nosedived nearly 10%. the company announced a $5.5 billion charge due to U.S.restrictions on chip exports to China. These rules impact Nvidia’s H20 graphics processors, crucial for the Chinese market. Other tech firms like AMD and Micron saw shares fall by 8% and 3%,respectively. ASML shares slid over 7% after reporting weak earnings. The tech sector led the decline, with Nvidia’s declaration of a $5.5 billion charge. The company faces challenges due to U.S.export limits on its H20 graphics processors. This move affects its business in China.The tech sector felt the brunt, dragging down the Nasdaq Composite close to bear market territory.
Federal Reserve Chair Jerome Powell added to the gloom. He spoke at the Economic Club of Chicago. Powell warned that tariffs could hike inflation and slow economic growth.His remarks came as the U.S. tightened export controls. This move targets advanced chips, sparking fears in the industry.
Meanwhile,Powell highlighted the risks of tariffs. He said they might cause higher prices and slower growth. His cautionary tone rattled investors. He hinted at a “challenging scenario” if price stability and job goals clash.The Fed chief’s speech at the Economic Club of Chicago raised eyebrows. he suggested tariffs could harm the economy. This news hit Nvidia hard, as china is a key market. The chip industry felt the heat, with AMD and micron Technology suffering losses.
Bitcoin (BTC) held steady around $84,000. It showed some resilience despite the market turmoil. retail sales surged 1.4% in March, the biggest jump in two years. Consumers are buying ahead of potential tariffs.Powell noted the Fed would wait for more data before adjusting rates.
Trade tensions loom large. The U.S. delayed tariffs for some nations but not China. Treasury Secretary Scott Bessett hinted at trade talks within 90 days. China’s exclusion from the tariff delay added to the uncertainty. Retail sales jumped 1.4%, hinting at pre-tariff buying. The Fed is watching inflation closely. The central bank will monitor economic signals before acting on rates.
Investors fear a trade war’s impact.
despite the market’s downturn, Bitcoin remained stable near $84,000. This resilience contrasts with the broader market’s volatility.
