Nvidia's Export Concerns Shake U.S. Markets as Powell Warns of Economic Slowdown

U.S. stock markets fell sharply after Nvidia disclosed steep charges due to U.S. chip export curbs to China. Federal Reserve Chair Jerome Powell emphasized a slowing U.S. economy, exacerbated by tariffs. Semiconductor stocks, especially Nvidia, declined notably amid ongoing U.S.-China tariff tensions.

U.S. stocks plummeted on Wednesday following a warning from Nvidia about potential financial setbacks stemming from new U.S. restrictions on chip exports to China. Federal Reserve Chair Jerome Powell also highlighted signs of a slowing U.S. economy, attributing part of the cause to recently imposed tariffs.

Powell's comments delivered at the Economic Club of Chicago reinforced investor concerns about decelerating growth and persistent inflation challenges linked to trade policies. Key semiconductor stocks, including Nvidia, saw substantial declines as the market responded to these announcements.

Nvidia reported it anticipated charges of $5.5 billion because of U.S. limits on its H20 AI chip exports, a significant move amid intensifying U.S.-China tariff disputes. Meanwhile, Dutch chip toolmaker ASML also expressed heightened uncertainty about its future due to these trade restrictions.

(With inputs from agencies.)