The stock, led by the global chip maker, trimmed its earnings to confirm that the US stock market opened on Wednesday, April 16th.
Something like Nvidia had shown that China was ready to engage with the US amid the ongoing tariff war as investors responded to the news, but previous losses had an impact on greater sentiment and contributed to key indicators.
NVIDIA (NVDA), Advanced Micro Devices (AMD), Micron Technology (MU) and ASML Holding (ASML) all fell sharply in pre-market trading. Stocks turned the greens upside down before the Wall Street opening, but cautious sentiment was left behind after Bell as tariffs on Washington’s ramped-up China became even more uneasy.
In particular, the latest move to curb the export of artificial intelligence chips has contributed to the Chinese market. Global chip makers AMD and ASML are also under pressure.
Nvidia’s warning about $5.5 billion quarterly billing in the AI chip curb saw a DIP of 6% in NVDA stock. AMD, ASML and other chip stocks also recorded significant losses.
The S&P 500 and Nasdaq fell by 1.2% and 2.1% respectively, while the industrial average for Dow Jones was about 0.6% lower.
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Optimism is still mitigating, but investors appear to be seeing an imminent melting in China and the US Customs Agency. Despite President Donald Trump’s administration, China has faced up to 245% on tariffs amid recent standoffs and retaliatory moves, but Beijing is signaling that it may be willing to come to the table.
However, China says it is ready for trade talks, with demands of “respect” from its US counterparts.
This series of events may see a slight increase in investor sentiment, but stocks are barely moving. Crypto also notched a few DIPs as the S&P 500, Nasdaq Composite and DJIA opened low on Wednesday.
Meanwhile, retail sales rose 1.4% in March, adjusting to consensus estimates. With recent positive inflation measures working little to lift the market, we focus on what this means to mean the overall US economic outlook before being appointed to “Emancipation Day.”
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