Global Markets Stumble Amid U.S.-China Trade Tensions and Record Gold Prices

Global stock markets declined due to U.S. restrictions on chip sales to China and ongoing tariff concerns affecting tech stocks. Gold prices soared to record highs amid market uncertainty. The U.S. economy showed signs of slowing growth, and fresh tariff probes were announced. Safe-haven currencies like yen and franc gained strength.

Global stock markets took a hit on Wednesday with significant declines following U.S. restrictions on chip sales to China and persistent tariff uncertainties, particularly impacting tech stocks. Notably, Nvidia reported that new export licensing requirements for its artificial intelligence chips would result in a $5.5 billion loss, causing an 8% drop in its share price. The MSCI's global stock gauge also fell approximately 1% amidst these developments.

The situation is further complicated by the U.S.'s fluctuating stance on tariffs, which continues to create volatility across the markets, as noted by Paul Christopher from Wells Fargo. Major U.S. indices, including the Dow Jones, S&P 500, and Nasdaq Composite, all reported significant declines. Federal Reserve Chair Jerome Powell highlighted a slowing U.S. economy, as consumer spending faces potential headwinds from increasing tariffs and changing economic dynamics.

In contrast to the stumbling stock markets, gold prices surged to another record high of $3,331 per ounce, with forecasts predicting further growth to $3,600 by year-end driven by safe-haven demand. Meanwhile, currencies like the Japanese yen and Swiss franc appreciated as investors sought refuge amid market uncertainties. European and Asian stocks also experienced declines, while the oil market saw a slight recovery on potential positive trade discussions between the U.S. and China.

(With inputs from agencies.)