Nvidia
Asian markets faced a downturn on Wednesday, weighed down by a sharp drop in Nvidia’s stock following U.S. restrictions on chip exports to China.
The move highlights the escalating tech conflict between the world’s two largest economies, adding new strain to an already tense global trade environment. Simultaneously, gold surged to a record high, and the U.S. dollar remained under pressure as investors braced for further volatility.
Nvidia, a cornerstone of the AI boom, saw its shares plunge by 6% in after-hours trading, erasing a staggering $160 billion in market capitalization. The sharp decline came after the company revealed it would face $5.5 billion in charges due to new U.S. government limits on its H20 AI chip exports to China — a key market for the tech giant.
Analysts like Daniel Ives of Wedbush Securities said the news signaled major roadblocks for Nvidia’s operations in China and warned that it could mark the beginning of a broader tech battle between Washington and Beijing.
Markets responded swiftly. Futures for the S&P 500 dropped 0.8%, while Nasdaq futures tumbled 1.4%. MSCI’s broad index of Asia-Pacific shares outside Japan fell 0.9%, ending a four-day rally.
Japan’s Nikkei dipped 0.5%, while Hong Kong’s Hang Seng slid 1.6%. China’s blue-chip stocks lost 0.6%, although local semiconductor firms such as Hua Hong Semiconductor and SMIC bucked the trend, rising 4% and 1%, respectively, as investors anticipated more domestic support.
China’s economic report offered some optimism. Its economy grew 5.4% in the first quarter, outpacing forecasts. However, the data was overshadowed by President Donald Trump’s latest push for a probe into new tariffs on U.S. critical mineral imports, on top of earlier reviews concerning chips and pharmaceuticals.
Tensions flared further with reports that Beijing ordered Chinese airlines to halt deliveries of Boeing aircraft.
Federal Reserve Chair Jerome Powell is expected to deliver a key speech later in the day, with markets anticipating a dovish tone following similar remarks by Fed Governor Christopher Waller.
Gold climbed 1.2%, hitting a new high of $3,266.65 per ounce, as risk-off sentiment dominated investor behavior. ANZ revised its year-end gold forecast to $3,600, citing increasing demand amid growing geopolitical and economic uncertainty.
Treasury yields stabilized, with the 10-year yield holding at 4.325%, well below last week’s high. The dollar weakened further; the euro rose to $1.1316, while the yen gained ground to 142.84 per dollar.
In commodities, oil prices were modestly higher, with Brent crude up 0.2% to $64.79 per barrel and U.S. crude edging to $61.42. Meanwhile, Japan’s central bank hinted at a potential policy pause if U.S. tariffs hurt its economy — a reflection of growing global unease as the trade battle unfolds.
