Wall Street Slips After Powell’s Remarks; Nvidia Drops Nearly 7%
The new export controls are part of the Trump administration’s ongoing efforts to block the sale of advanced semiconductors to China.
Quick overview
- U.S. stock markets experienced a sharp decline after Federal Reserve Chair Jerome Powell raised concerns about the economic impact of tariffs.
- The Dow Jones fell 1.73%, the S&P 500 dropped 2.24%, and the Nasdaq Composite plunged 3.07% amid fears of an economic slowdown.
- Nvidia's shares tumbled 6.87% due to warnings about significant charges from new U.S. export restrictions on chip sales to China.
- Market confusion over a White House fact sheet indicating tariffs on certain Chinese imports could reach 245% added to investor anxiety.
U.S. stock markets fell sharply midweek after Federal Reserve Chair Jerome Powell expressed concerns about the economic impact of tariffs on the U.S. economy.
All three major Wall Street indexes ended the session in the red. The Dow Jones Industrial Average, which tracks 30 blue-chip companies, dropped 1.73% to 39,669.39 points. The S&P 500, which reflects the performance of the largest U.S. companies, fell 2.24% to 5,275.70 points. The tech-heavy Nasdaq Composite plunged 3.07% to 16,307.16.
Speaking at the Economic Club of Chicago, Powell said U.S. economic growth appears to be slowing, with consumer spending increasing only modestly. He also noted that a surge in imports ahead of new tariffs could weigh on future growth estimates.
Powell’s comments confirmed investors’ growing concerns about a potential economic slowdown paired with stubborn inflation, driven by ongoing trade tensions and tariffs.
Nvidia Tumbles on Export Restrictions
Among the biggest losers of the day was Nvidia, whose shares sank 6.87% after the company warned of significant charges related to new U.S. restrictions on chip exports to China. The Philadelphia Semiconductor Index dropped 4.10%.
The new export controls are part of the Trump administration’s ongoing efforts to block the sale of advanced semiconductors to China. As tech stocks slid, investors flocked to safe-haven assets—pushing gold to a new all-time high above $3,340 per ounce.
Tariff Confusion Rattles Markets
Markets were also shaken by tariff confusion on Wednesday, following the release of a White House fact sheet suggesting that certain Chinese imports are now subject to tariffs of up to 245%.
The document stated: “China now faces up to 245% tariffs on imports to the United States as a result of its retaliatory actions.” This figure caused alarm, as it significantly exceeds the 145% rate that traders had been pricing in.
The White House quickly clarified that the 245% figure is not new and that reports treating it as a newly announced tariff were “misleading.”
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