U.S. stock futures dropped sharply on Wednesday. The decline came after Nvidia disclosed severe new limits on chip exports to China. These Nvidia export restrictions hit markets hard, especially the tech sector.
Dow Jones futures slipped 0.2% early in the morning. The S&P 500 futures followed, falling by 0.7%. The tech-heavy Nasdaq saw the steepest drop, losing 1.3%. These declines signaled growing investor concern about trade tensions and regulatory risks.
Nvidia shares took a hit during premarket trading. The company reported that new U.S. rules require licenses for shipping its H20 AI chips to China. Nvidia said the restrictions could cost the company around $5.5 billion. Investors reacted quickly, sending tech stocks lower across the board.
In addition to Nvidia, companies like AMD also saw their shares decline. Negative updates from ASML contributed to the broader tech sector slide. These developments come as the market continues to watch President Trump’s trade policy with caution.
The uncertainty around tariffs is adding pressure. The administration is considering exemptions for auto duties. However, the status of paused tariffs on electronics remains unclear. Meanwhile, new tariffs may target pharmaceutical goods, semiconductors, and essential minerals.
Trump recently paused most reciprocal tariffs for 90 days. However, the future of those tariffs is still up in the air. According to Treasury Secretary Scott Bessett, more clarity will come soon. He expects progress in negotiations with several U.S. trading partners.
Bessett said trade talks aim to reduce tariffs and non-tariff barriers. He also mentioned concerns about currency manipulation and industry subsidies. The U.S. hopes for agreements before the 90-day pause ends.
Investors also turned their attention to upcoming retail data. The Census Bureau will release new numbers soon. Analysts are watching closely for signs of an economic slowdown.
Meanwhile, gold prices surged to a record high. The metal reached $3,275 per ounce on Tuesday night. Rising trade fears drove investors to safe assets. Gold gained 1.4% during the day as tension between the U.S. and China escalated.
As Nvidia export restrictions hit markets again, Wall Street braces for more volatility. Tech stocks remain under pressure, and trade policy remains uncertain. For now, investors are closely tracking every headline.
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