U.S. Stocks Drop Amid Chip Export Restrictions and tariff Warnings
U.S. stocks took a hit on Wednesday. The S&P 500 fell by 2.2%, and the Dow Jones dropped 1.7%. The Nasdaq, heavily influenced by tech stocks, slid by 3%. This decline was largely due to new U.S. restrictions on chip exports to China and concerns over tariffs.
Nvidia’s shares plummeted nearly 10%. The company expects a $5.5 billion charge as of the new export rules affecting its H20 graphics processors, a vital product for the Chinese market. Other chipmakers like AMD,Micron,and ASML also saw their shares drop.
Despite the market downturn, Bitcoin remained stable around $84,000. Federal Reserve Chair Jerome Powell warned that tariffs could cause higher inflation and slower growth. He spoke at the Economic Club of Chicago, stating the fed would wait for more clarity before adjusting interest rates.
Powell noted that the Fed might face a “challenging scenario” if its goals of stable prices and full employment conflict. Retail sales rose 1.4% in March, the strongest in two years, possibly due to consumers buying goods before tariffs kick in.
While the Trump management delayed tariffs for some countries, China was excluded. Treasury Secretary Scott bessett said trade policy clarity could come within 90 days, but China set conditions for talks.
