World markets mostly declined on Wednesday as Nvidia and other tech firms were hit hard by new U.S. restrictions on the export of advanced AI chips. The announcement sparked renewed concerns about trade tensions and global economic growth.
Futures for the S&P 500 slid 1.2%, while the Dow Jones Industrial Average futures fell 0.6%.
Nvidia shares dropped 6.3% in after-hours trading following news that the U.S. government had tightened export regulations on one of its AI-focused chips. AMD, another major chip maker, also saw its stock tumble 7.1% after markets closed.
Adding to the uncertainty, the Trump administration launched an investigation into imports of critical minerals like rare earths—key components in products ranging from smartphones to electric vehicles—rekindling trade war fears.
European markets opened weaker. The UK’s FTSE 100 slipped 0.2% to 8,233.10 after inflation data showed a second consecutive monthly decline in March, largely due to falling gas prices. Germany’s DAX fell 0.7% to 21,107.68, and France’s CAC 40 dipped 0.6% to 7,289.67.
In Asia, stocks in China led regional losses despite strong annual growth of 5.4% reported for the last quarter. Quarterly growth, however, slowed to 1.2%, down from 1.6% in the final quarter of 2024. Hong Kong’s Hang Seng dropped 2% to 20,922.54, while the Shanghai Composite edged up 0.1% to 3,271.19.
Economists have been scaling back their forecasts after President Donald Trump raised tariffs on most Chinese imports to 145%. In response, China increased its own duties on U.S. imports to 125%.
Analysts from ANZ Research noted that the disruption is less about the tariffs themselves and more about the unpredictability surrounding them. “President Trump’s announcements have impacted business confidence and activity,” said Raymond Yeung and colleagues in a report following the Chinese data release.
In Tokyo, the Nikkei 225 lost 1% to close at 33,920.40, dragged down by tech heavyweights. Chip testing equipment maker Advantest slid 6.6%, and Disco Corp. plunged 8%. South Korea’s Kospi declined 1.2% to 2,447.43, while Australia’s S&P/ASX 200 edged down less than 0.1% to 7,758.90. India’s Sensex was flat, and Thailand’s SET dipped 0.1%.
On Tuesday, U.S. markets showed minor losses: the S&P 500 fell 0.2%, the Dow declined 0.4%, and the Nasdaq slipped less than 0.1%.
Uncertainty around Trump’s tariff strategy has investors on edge, unsure of what’s next.
Meanwhile, U.S. Treasury yields steadied after last week’s volatility, calming concerns about the reliability of government bonds as safe-haven assets. The 10-year Treasury yield stood at 4.33%, down from 4.38% on Monday and 4.48% last week.
The U.S. dollar also stabilized after its recent sharp fall, which had fueled speculation that the trade war might be weakening its safe-haven status.
In stock-specific news, Palantir Technologies surged 6.2%, marking its second day of gains after NATO announced it would use Palantir’s AI tools in allied command operations.
Oil prices edged lower on expectations that slowing global growth could reduce demand. U.S. crude fell 69 cents to $60.64 per barrel, while Brent crude dropped 65 cents to $64.01.
In currency markets, the dollar weakened slightly to 142.26 yen from 143.24 yen, while the euro rose to $1.1377 from $1.1283.