Economic Jitters: U.S. Stocks Plunge Amid Trade Tensions and Fed Warnings

U.S. stocks fell sharply as Nvidia warned about charges linked to U.S. chip export curbs to China, and Fed Chair Jerome Powell highlighted slowing economic growth. This comes amid increased tariffs between the U.S. and China, stoking market and investor uncertainty.

U.S. stocks saw a significant drop on Wednesday as Nvidia announced potential financial challenges stemming from newly enforced U.S. restrictions on chip exports to China. The announcement coincided with remarks from Federal Reserve Chair Jerome Powell indicating that U.S. economic growth is beginning to falter.

Powell, speaking at the Economic Club of Chicago, noted that unexpectedly high tariffs could result in persistent inflation and reduced growth, signaling potential delays in altering interest rates. These statements fueled further stock market declines, which had already begun with notable losses in Nvidia and other semiconductor companies.

The Dow Jones fell by 699.57 points, or 1.73%, with the S&P 500 and Nasdaq Composite also registering significant losses. Meanwhile, the Cboe Volatility index, a measure of market fear, increased, reflecting the heightened uncertainty amid the ongoing U.S.-China trade conflicts and resultant tariff implications.

(With inputs from agencies.)