U.S. Stocks Plunge, Nvidia Faces Significant Revenue Loss
U.S. stocks took a sharp downturn this week, with tech stocks bearing the brunt of the losses. Nvidia,a tech giant,led the decline,projecting a $5.5 billion revenue loss due to new export restrictions on China. On April 16, the nasdaq dropped 3.61%, closing at 16,216.68. The Dow Jones and S&P 500 also suffered, falling 1.55% and 2.33%, respectively. The market’s sudden shift to bearish sentiment was fueled by fears of a trade war.
Investors are worried about a potential global recession.A Bank of America survey shows that 42% of investors expect a recession, one of the highest levels in 20 years. Nvidia’s stock fell 8.49% to $102.The company anticipates a major hit to its revenue because of restrictions on AI chip exports to China. These restrictions could cost Nvidia $5.5 billion in the first quarter of 2025. The U.S. government now requires an export license for selling H20 chips to China.These chips are crucial for training AI models,like ChatGPT.This move by Washington has sparked concerns about the tech sector’s future. The Dow Jones lost 613 points,while the S&P 500 dropped 125.78 points.The H20 chips, used in AI models, are at the center of the issue. The company needs a license to sell these chips, impacting its earnings.
Investors are now looking to diversify away from the U.S. dollar. Nearly 61% believe the USD will weaken in the next year. Safe assets like gold are gaining popularity.
Bitcoin, despite its volatility, showed resilience. It hit a low of $83,100 but stabilized at $84,233. The market’s decline affected Bitcoin, but it remained relatively stable compared to the broader market.
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- investors are cutting their U.S. dollar exposure.
- Safe assets like gold are on the rise.
- Investors are worried about the tech industry’s future.
Investors are worried about the tech industry’s future. The market’s drop is a warning for the tech industry. The market’s decline is a warning for the tech industry.
