Global stocks tumbled on Wednesday following fresh US export restrictions on advanced AI chips bound for China, fuelling fears of an intensifying trade war and pushing gold prices to a new record, Reuters reported.
The Biden administration introduced new licensing rules on chip sales to China, affecting Nvidia’s H20 and AMD’s MI308 processors. Nvidia said the change would cost the company $5.5 billion, sending its shares down nearly 7%.
The MSCI world stock index dropped around 1.5%. On Wall Street, the Dow fell 1.7%, the S&P 500 slid 2.2%, and the Nasdaq slumped 3.1%, hit hard by tech losses.
“Capital markets remain caught between news about new tariffs and, on the other hand, about tariff negotiations or suspensions,” wrote Paul Christopher of Wells Fargo Investment Institute.
Federal Reserve Chair Jerome Powell commented that the Fed would remain cautious, awaiting further economic data before adjusting rates. He described recent market volatility as a rational response to the Trump administration’s tariff upheavals.
“Powell is doing what the rest of us are doing – waiting and watching,” said Jamie Cox of Harris Financial Group.
Retail sales data showed a March surge as Americans rushed to buy vehicles ahead of potential tariffs. However, discretionary spending showed signs of strain.
President Trump has launched a new investigation into tariffs on critical mineral imports and is reviewing levies on pharmaceuticals and semiconductors. China reportedly responded by suspending Boeing aircraft deliveries.
European stocks also declined, with the STOXX 600 down 0.2%. Asian markets saw mixed results: the Hang Seng dropped 1.9%, while Chinese blue chips rose 0.3% on positive pre-tariff GDP data.
Gold climbed 3.5% to a record $3,339 per ounce. ANZ Bank now forecasts gold to hit $3,600 by year-end amid mounting safe-haven demand.
US Treasury yields slipped, with the 10-year falling to 4.283%. Traders increasingly expect the Fed to begin cutting rates by June.
The dollar index fell 0.7%, its lowest since April 2022, as investors sought refuge in the Japanese yen and Swiss franc, which rose 0.8% and 1.2% respectively.
Oil rose on US sanctions against Chinese importers of Iranian crude, while Bitcoin edged up 0.5% to $84,389, though down nearly 10% in 2025.
