FX.co ★ Nvidia Selloff Pressures Wall Street

U.S. stock markets witnessed a decline on Wednesday, as the major indices experienced losses spurred by a significant downturn in the technology sector. The S&P 500 fell by 0.9%, the Nasdaq declined by 1.7%, and the Dow Jones decreased by approximately 140 points. This downturn was primarily driven by escalating trade tensions, which stoked investor concerns about their possible adverse effects on corporate profits and business operations. Notably, Nvidia's shares plummeted by around 5.7% following the company's revelation that the U.S. government had restricted sales of specific AI chips to China without an appropriate license. Consequently, Nvidia anticipates a revenue shortfall of $5.5 billion for the current quarter. Other semiconductor stocks were significantly impacted as well, with AMD's shares dropping 6.2% and Micron Technology dipping by 2.5%. Major technology companies also recorded losses: Apple's shares fell 1.4%, Microsoft's 1.5%, Meta's 2.2%, Amazon's 1.3%, and Alphabet's 1.8%. Meanwhile, in an encouraging sign from the economic data front, retail sales surged 1.4% month-on-month in March, marking the sharpest increase since January 2023, as consumers increased their car purchases in anticipation of avoiding tariffs.