Early trading saw a 0.9% decline in the S&P 500. As of 3:35 pm CEST, the Dow Jones Industrial Average had down 180 points, or 0.4%, while the Nasdaq composite had fallen a market-leading 1.7% due to the decline in Nvidia and other chip industry companies.
The market’s most enormous weight, Nvidia, fell 5.7% after the company said that the US government was limiting its shipments of its H20 processors to China due to concerns that they would be used to create supercomputers. The restrictions might reduce Nvidia’s first-quarter earnings by around $5.5 billion (€4.8 billion), which would cover expenses for inventories and purchase obligations.
The two biggest economies in the world, China and the United States, have been engaged in a trade war that has resulted in increased tariffs and other trade barriers. However, both US political parties not just President Donald Trump’s are increasingly supporting these export limits for chips used in AI research.
Earlier this week, Democratic Senator Elizabeth Warren urged the US Commerce Department “to immediately move forward with restrictions on the export of Nvidia’s H20 and other advanced AI chips” to China, claiming that they may improve its surveillance and military capabilities.
Also Read:
Connecting Cultures and Bridging Barriers Across Borders: Dr. Csilla Rostas
Ahmed Alqadeeb: Leadership and Business Growth in Saudi Arabia
