Nvidia's Export Restrictions Trigger Market Jitters

Nvidia's announcement of export restrictions to China has shaken Wall Street, potentially impacting first-quarter results by USD 5.5 billion. This development highlights the complexities of Trump's trade war, affecting global markets and raising recession fears amid driven growth in sectors like AI and healthcare.

Nvidia's revelation of new export restrictions to China has sent ripples through Wall Street, sparking a sell-off that saw the S&P 500 drop by 1.2% and the Nasdaq composite by 2.1% as of midday Wednesday. The move may significantly impact Nvidia's first-quarter results by USD 5.5 billion.

The ongoing trade tensions between the U.S. and China are casting a shadow over global markets. Rival chipmakers like Advanced Micro Devices also reported potential hits to revenue due to similar U.S. export restrictions, signaling growing uncertainty in the tech sector.

World markets reacted with sharp declines across Asia and Europe, exacerbated by recession fears. Meanwhile, some sectors like health care saw growth, as companies like Abbott Laboratories reported stronger-than-expected profits, providing a degree of stability to otherwise shaky markets.

(With inputs from agencies.)