Updated April 16, 2025
05:42 PM EDT
INVESTOPEDIA
Stocks tumbled Wednesday as investors digested news of U.S. restrictions on chip exports to China and Federal Reserve Chair Jerome Powell's latest assessment of the economy.
The S&P 500 and tech-heavy Nasdaq Composite dropped 2.2% and 3.1%, respectively, while the Dow Jones Industrial Average shed 1.7%, or 700 points, as each of the indexes rebounded from steeper losses in the final half hour of trading. The major indexes were coming off modest declines on Tuesday, which was a relatively calm session after a volatile few weeks of trading fueled by concerns about tariffs and a brewing global trade war, notably growing tensions between the U.S. and China.
Speaking at an event in Chicago this afternoon, Powell said that tariffs are likely to slow growth and raise inflation. He also pointed to a sharp decline in sentiment among consumers and businesses as a result of the Trump administration's trade policies. Powell reiterated that the Fed is in a good position to wait for greater clarity on the impact of tariffs before adjusting interest rates. Stocks were already sharply lower this morning but extended their losses while Powell spoke.
Nvidia (NVDA) spearheaded the move lower on Wednesday, falling nearly 7%, after the company announced it would take a $5.5 billion charge after the U.S. limited exports of its AI chips to China. Shares of Advanced Micro Devices (AMD), which faces similar restrictions, were also down about 7%.
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Adam Gray / Getty Images
Among other noteworthy chip sector movers, ASML Holding (ASML) fell 7% after the Dutch manufacturer of semiconductor-producing machinery reported worse-than-expected earnings and issued a soft outlook. Broadcom (AVGO) dropped more than 2%, while Intel (INTC) and Marvell Technology (MRVL) were each down about 3%. Applied Materials (AMAT), KLA Corp. (KLAC), GlobalFoundries (GFS) and Lam Research (LRCX) all tumbled about 5%, while the VanEck Semiconductor ETF (SMH) declined more than 4%.
Mega-cap technology stocks were down across the board. Tesla (TSLA) closed 5% lower, while Apple (AAPL), Microsoft (MSFT) and Meta Platforms (META) each dropped nearly 4%. Amazon (AMZN) slipped 3%, while Alphabet (GOOG) was down 2%.
Energy sector stocks were among the few gainers on Wednesday as West Texas Intermediate futures, the U.S. crude oil benchmark, was recently up 2.1% to $62.60 per barrel. Marathon Petroleum (MPC) and Occidental Petroleum (OXY) each advanced more than 1%, while Diamondback Energy (FANG) advanced 2%, though they were well off earlier highs.
Gold futures rose 3.6% to $3,360 an ounce, as the precious metal continues to hit record highs with investors turning to the traditional safe haven amid the uncertainty about tariffs. Shares of Newmont (NEM), the world's largest gold producer, rose 2.5%.
The yield on the 10-year Treasury note, which affects borrowing costs on all sorts of loans, notably mortgages, was at 4.28%, down from 4.34% at yesterday's close. The yield had fallen to below 3.90% earlier this month and rose as high as 4.50% last week as investors reassessed their holdings in U.S. government debt amid the concerns about the potential impact of U.S. trade policy.
Bitcoin was at $84,500 in late-afternoon trading, down from an earlier high of $85,500.
Stocks tumbled Wednesday as investors digested news of U.S. restrictions on chip exports to China and Federal Reserve Chair Jerome Powell's latest assessment of the economy.
The S&P 500 and tech-heavy Nasdaq Composite dropped 2.2% and 3.1%, respectively, while the Dow Jones Industrial Average shed 1.7%, or 700 points, as each of the indexes rebounded from steeper losses in the final half hour of trading. The major indexes were coming off modest declines on Tuesday, which was a relatively calm session after a volatile few weeks of trading fueled by concerns about tariffs and a brewing global trade war, notably growing tensions between the U.S. and China.
Speaking at an event in Chicago this afternoon, Powell said that tariffs are likely to slow growth and raise inflation. He also pointed to a sharp decline in sentiment among consumers and businesses as a result of the Trump administration's trade policies. Powell reiterated that the Fed is in a good position to wait for greater clarity on the impact of tariffs before adjusting interest rates. Stocks were already sharply lower this morning but extended their losses while Powell spoke.
Nvidia (NVDA) spearheaded the move lower on Wednesday, falling nearly 7%, after the company announced it would take a $5.5 billion charge after the U.S. limited exports of its AI chips to China. Shares of Advanced Micro Devices (AMD), which faces similar restrictions, were also down about 7%.
Adam Gray / Getty Images
Among other noteworthy chip sector movers, ASML Holding (ASML) fell 7% after the Dutch manufacturer of semiconductor-producing machinery reported worse-than-expected earnings and issued a soft outlook. Broadcom (AVGO) dropped more than 2%, while Intel (INTC) and Marvell Technology (MRVL) were each down about 3%. Applied Materials (AMAT), KLA Corp. (KLAC), GlobalFoundries (GFS) and Lam Research (LRCX) all tumbled about 5%, while the VanEck Semiconductor ETF (SMH) declined more than 4%.
Mega-cap technology stocks were down across the board. Tesla (TSLA) closed 5% lower, while Apple (AAPL), Microsoft (MSFT) and Meta Platforms (META) each dropped nearly 4%. Amazon (AMZN) slipped 3%, while Alphabet (GOOG) was down 2%.
Energy sector stocks were among the few gainers on Wednesday as West Texas Intermediate futures, the U.S. crude oil benchmark, was recently up 2.1% to $62.60 per barrel. Marathon Petroleum (MPC) and Occidental Petroleum (OXY) each advanced more than 1%, while Diamondback Energy (FANG) advanced 2%, though they were well off earlier highs.
Gold futures rose 3.6% to $3,360 an ounce, as the precious metal continues to hit record highs with investors turning to the traditional safe haven amid the uncertainty about tariffs. Shares of Newmont (NEM), the world's largest gold producer, rose 2.5%.
The yield on the 10-year Treasury note, which affects borrowing costs on all sorts of loans, notably mortgages, was at 4.28%, down from 4.34% at yesterday's close. The yield had fallen to below 3.90% earlier this month and rose as high as 4.50% last week as investors reassessed their holdings in U.S. government debt amid the concerns about the potential impact of U.S. trade policy.
Bitcoin was at $84,500 in late-afternoon trading, down from an earlier high of $85,500.
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