Chipmakers Hit Hard by U.S.-China Trade Tensions

Chipmakers experienced significant losses on Wall Street due to new U.S. restrictions on chip exports to China. Nvidia and AMD reported substantial financial hits, with shares dropping alongside other chip stocks. These trade tensions stirred market volatility, overshadowing positive retail sales data and impacting investor sentiment.

Chipmakers have taken a significant hit on Wall Street as tensions between the U.S. and China escalate over new export controls. Nvidia and AMD faced severe financial impacts, with their shares plummeting as a result of the newly imposed restrictions on chip exports.

Nvidia anticipates $5.5 billion in charges, while AMD expects an $800 million hit, contributing to a broader decline in semiconductor stocks. Electronics giant ASML similarly warned of increased uncertainty due to the tariffs, resulting in a sharp drop in its shares.

Despite stronger-than-expected March retail sales, investor sentiment remained cautious. Market volatility continued, driven by lingering trade conflicts and anticipation of upcoming remarks from Federal Reserve Chair Jerome Powell on economic outlook and potential rate adjustments.

(With inputs from agencies.)