U.S. stocks are putting a $5.5 billion loss in revenue loss due to China’s export restrictions, and tech stocks are putting the worst in sight, seeing massive losses.
After relatively low volatility this week, US stocks are falling again. This time, tech stocks and Nvidia were leading the decline. On Wednesday, April 16th, NASDAQ traded at 16,216.68, losing 606.49 points or 3.61%.
Still, investors suffered the rest of the market as they got so badly due to fears of a trade war. The Dow Jones fell 613 points or 1.55% to trade at 39,742.32. At the same time, the S&P 500 dropped by 125.78 points or 2.33%.
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A recent Bank of America survey suggests that fears of a recession is rising, with 42% of investors expecting a global recession. In particular, this is the fourth highest level in 20 years.
Investors are also trying to reduce their exposure to the US dollar, with nearly 61% saying the US dollar will fall in the next 12 months. At the same time, safe shelter assets like gold are increasing.
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The decline in the stock market also affected Bitcoin (BTC). This hit a daily low of $83,100 before stabilizing at $84,233. Despite its high volatility, Bitcoin was relatively resilient compared to the US market.
Nvidia is leading the market decline
The decline was a decline of 8.49% to $102 after estimating a large loss in revenue. In other words, the company predicted that Washington’s new restrictions on AI chip exports to China would cost a total of $5.5 billion in the first quarter of 2025.
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According to the company, the US government has notified that an export license is required to sell H20 chips to China. These advanced AI chips are used to train AI models such as Openai’s ChatGPT. Washington is concerned that China may use these chips to train its own AI models, such as Deepseek.
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