Cliff Notes – US markets fall
- US stock markets experienced substantial losses, particularly in AI chipmakers like Nvidia and AMD, which plummeted after new export restrictions to China were announced.
- Nvidia forecasted a $5.5 billion impact due to licensing requirements for its H20 chip, while AMD anticipated a $800 million charge for its MI308 chip.
- The ongoing trade tensions with China, driven by tariffs and export controls, are intensifying economic concerns, with the central bank warning of slower growth and rising inflation.
US markets fall as AI chipmakers mourn new restrictions on China exports
US stock markets suffered more significant losses on Wednesday, with stocks in leading AI chipmakers slumping after firms said new restrictions on exports to China would cost them billions.
Nvidia fell 6.87% – and was at one point down 10% – after revealing it would now need a US government licence to sell its H20 chip.
Rival chipmaker AMD slumped 7.35% after it predicted a $800m (£604m) charge due to its MI308 also needing a licence.
Dutch firm ASML, which makes hardware essential to chip manufacturing, fell more than 5% after it missed order expectations and said US tariffs created uncertainty.
The losses filtered into the tech-dominated Nasdaq index, which recovered slightly to end 3% down, while the larger S&P 500 fell 2.2%.
Such losses would have been among the worst in years were it not for the turmoil over recent weeks.
It comes as China remains the focus of Donald Trump‘s tariff regime, with both countries imposing tit-for-tat charges of over 100% on imports.
The US Commerce Department said in a statement it was “committed to acting on the president’s directive to safeguard our national and economic security”.
Additional sources
Fed chair says Trump tariffs could make inflation worse as US stocks slide further – The Guardian
US markets fall as AI chipmakers mourn new restrictions on China exports – Sky News