Wednesday was another see of red for many stock markets around the world. The drop in the US stock market hit Tech Stocks particularly hard. While the S&P 500 and the Nasdaq were both down on Tuesday the losses were slight. This was on the back of US banks reporting better than expected revenues and greater progress towards a trade deal with Britain. However any cautious optimism from investors was short lived as on Wednesday there were more big losses.
Nvidia Under PressureÂ
Nvidia, the American chip goliath, revealed limits on its sales to China. This is the first time President Donald Trump has put restrictions on the sales of semi-conductors to a foreign nation. Nvidia, who dominates the chip manufacturing market will now need to apply for a licence to sell its products to China.Â
Nvidia has claimed that they will lose 5.5 billion USD as it will not be able to sell stock piles of products and will be unable to fulfil orders. This saw Nvidia stock drop by 6%. Nvidia often sets the tone for tech stocks due to its gargantuan size.
Mr. Trump’s unpredictable tariff policies continue to influence global market sentiment, particularly in industries at risk of additional duties or possible reliefs. A Bank of America survey revealed that global investors have reduced their U.S. stock holdings to a record low over the past two months, citing the risk of a recession triggered by Mr. Trump’s trade war as a significant threat to markets. If this pattern continues the once burgeoning US techs could be in for yet more losses.
Sources
The New York Times – Stocks Tumble as Tech Investors Pull Back
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