Dow, S&P 500, Nasdaq futures fall as Nvidia stock weighs on tech
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US stock futures fell on Wednesday after Nvidia (NVDA) revealed costly new curbs on chip exports to China, and investors grappled with uncertainty over President Trump’s trade policy.
Futures attached to the Dow Jones Industrial Average (YM=F) slipped 0.01%. Futures attached to the benchmark S&P 500 (ES=F) fell 0.5%. Futures attached to the tech-heavy Nasdaq Composite (NQ=F) plummeted 1.1%.
CBOT – Delayed Quote•USD
As of 5:39:03 AM EDT. Market Open.
YM=FES=F NQ=F
Nvidia’s (NVDA) stock took a hit in premarket trading on Wednesday after the company revealed that the US government has imposed new restrictions on its chips.
A new filing from Nvidia on Tuesday showed that the US government has required licenses for exports to China of the company’s H20 artificial intelligence chip. The chip giant said the move would result in $5.5 billion in charges to the company.
US stocks lost momentum on Wednesday, drifting lower after a brief rally as uncertainty over Trump’s trade policy continued to weigh on Wall Street. Tech stocks, including AMD (AMD), took a hit in premarket trading following negative news from ASML (ASML) and Nvidia.
In an exclusive interview with Yahoo Finance on Tuesday, Treasury Secretary Scott Bessett said he expects to see “substantial clarity” on tariffs with major US trading partners, excluding China, before Trump’s 90 day pause concludes.
“Once we reach a level that we’ve agreed on and they’ve agreed to lower their tariffs, lower their non tariff barriers, currency manipulation, and subsidies of industry and labor, then I think we can move forward,” Bessett said.
On Wednesday, investors will be watching for new data from the Census Bureau on retail sales as warningsof an economic slowdown pile up on Wall Street.
In commodities, gold (GC=F) has reached a new record as the escalating trade war between the US and China pushes investors towards safe havens. Bullion pushed past $3,275 an ounce for the first time late Tuesday evening after gaining 1.4% throughout the day.
LIVE6 updates
Good morning. Here’s what’s happening today.
Global tech stocks drop as ASML warning adds to Nvidia curbs
Technology stocks sank as new US government restrictions on the export of Nvidia Corp. chips to China and a disappointing report from ASML Holding NV fanned trade war concerns, wiping out $155 billion in market value for the two companies alone.
Bloomberg News reports:
Nvidia (NVDA) fell as much as 7.1% in US premarket trading after the chipmaker warned it will report around $5.5 billion in related charges during the fiscal first quarter, contributing to a 1.4% decline in Nasdaq 100 futures. Dutch chip-equipment maker ASML (ASML) slid as much as 7.6%. The selloff in semiconductor stocks over the past three months has already wiped out about $2 trillion in market capitalization.
President Donald Trump’s administration has barred Nvidia from selling its H20 chip in China, an escalation of Washington’s tech battle with Beijing. ASML later added to investor anxiety by posting orders that missed expectations and saying that it doesn’t know how to quantify the impact of recent tariff announcements.
Gold breaks $3,300 as expanding trade war bolsters haven demand
Gold (GC=F) surged to a fresh high on haven demand as the dollar fell and tech stocks slumped after US President Donald Trump ordered a probe that could open up a new front in the global trade war.
Bloomberg News reports:
Bullion gained as much as 2.7% on Wednesday to climb above $3,300 an ounce for the first time, surpassing the previous record set on Monday. The dollar fell to a fresh six-month low as traders were whiplashed again by a slew of tariff headlines, with Trump launching an investigation into the need for levies on critical minerals.
Asian indexes slump as Nvidia chip restriction makes impact
Asian markets slid late Tuesday into early Wednesday morning as tech stock across the region slumped. New US restrictions on Nvidia chip exports into China shook investor confidence as plunging values dragged major indexes down.
Reuters reports:
On Wednesday, MSCI’s broadest index of Asia-Pacific shares outside Japan (9010.HK) fell 1.4%, snapping a four-day winning streak. Japan’s Nikkei (^N225) dropped 1.6%.
Chinese blue chips fell 0.7% as investors failed to find much solace in some solid GDP data that predated the tariff increases in April. Hong Kong’s Hang Seng (^HSI) slumped 2.7%.
“Both countries seem to believe they have the upper hand, potentially prolonging the current stalemate for months to come,” said analysts at PGIM Fixed Income in a note to clients.
“China appears to have no intention of climbing down from its current stance on tariffs and instead views the current trade dynamics as an opportunity to make inroads with countries that export to the U.S.”
Gold rises to record high as Trump’s trade war pushes havens higher
Gold (GC=F) reached a record high following US President Donald Trump’s refusal to begin negotiations with China in the ongoing trade war between the world’s two largest economies. As global markets are rattled by the economic push and pull, gold continues to be pushed higher as demand for safe havens drives investors toward the precious metal.
Stock in the beleaguered megacap AI chip maker Nvidia has taken another hit in after-hours trading following the news that the US government has restricted the exports of H20 chips to China. The market is a huge buyer of Nvidia products with the reduction leading to a $5.5 billion hit to the company’s bottom line.
United Airlines stock soared after beating Q1 revenue expectations in an early report for the major airline. Earnings estimates sit at $0.91 a share with the company declaring comfortable profit in a rocky sector as airlines have taken a hit during the start to the year. United have promised ‘aggressive’ investment in growth leading to a positive uptick in investor sentiment.
Shares in multinational brokerage firm Interactive Brokers sank in extended trading after the company missed earnings estimates in Q1 reports. The stock value dropped on after-hours open and continued to sink throughout the trading period, plunging 9.8%.
