Wall Street’s turbulence deepens as Nvidia’s China warning and Powell’s hawkish tone unsettle markets
April 17, 2025 – www.dailyforex.pk
U.S. stock futures remained flat late Wednesday, stabilizing after a tech-led selloff earlier in the day. The drop came on the heels of a major warning from Nvidia over export-related losses and Federal Reserve Chair Jerome Powell’s firm stance against imminent rate cuts.
Market Snapshot: Futures Pause After Brutal Selloff
- S&P 500 Futures: 5,303.50 (unchanged)
- Nasdaq 100 Futures: 18,393.00 (flat)
- Dow Jones Futures: 39,876.00 (+0.1%)
Markets are still reeling from steep declines earlier in the U.S. trading session. All three major indexes closed significantly lower on Wednesday, driven by sharp losses in tech and semiconductor stocks.
Nvidia Tanks 7% on China Export Shock – $5.5B Hit Forecasted
Nvidia (NASDAQ: NVDA) suffered a major blow, sliding nearly 7% after revealing a projected $5.5 billion hit to first-quarter revenue. The losses are linked to U.S. export curbs on its H20 AI chip, which was specially developed for the Chinese market.
New U.S. regulations now demand an export license for these products, a restriction that U.S. officials say will remain “indefinitely.”
Tech and Chip Stocks Slide as Fallout Spreads
Nvidia’s warning sent a ripple across the semiconductor and tech sectors:
- AMD (NASDAQ: AMD) plunged over 7%
- Intel (NASDAQ: INTC) dropped 3%
- Broadcom (NASDAQ: AVGO) lost 2.4%
- Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), Amazon (NASDAQ: AMZN), and Meta (NASDAQ: META) all ended the session in the red
- Tesla (NASDAQ: TSLA) sank almost 5%
Wall Street analysts warned that escalating U.S.-China tensions and tech export restrictions could add more volatility to an already fragile market.
Powell: No Rate Cuts in Sight Amid Tariff Pressures
Speaking at the Economic Club of Chicago, Federal Reserve Chair Jerome Powell reiterated that the central bank is not planning to lower interest rates soon. He pointed to ongoing inflationary risks and the uncertain impact of new trade tariffs.
“Our job is to ensure inflation expectations stay anchored,” Powell stated, “and avoid a temporary price surge turning into long-term inflation.”
Powell’s remarks added to bearish sentiment, especially with markets hoping for monetary easing to offset economic pressures.
Retail Sales Surprise with March Jump, But Outlook Worsens
Adding to the day’s mixed signals, U.S. retail sales rose by 1.4% in March, up from a revised 0.2% in February. The spike was largely driven by vehicle purchases, as consumers rushed to buy before new tariffs kick in.
However, analysts from ING warned the momentum may not last:
“Consumers advanced big-ticket purchases, fearing price hikes. But collapsing confidence around jobs, inflation, and wealth suggests consumption will weaken later this year.”
🔍 Key Takeaways for Traders and Investors
- Expect continued volatility in U.S. equities, particularly in the tech and chip sectors
- The Fed’s hawkish stance lowers the probability of rate cuts in Q2 2025
- Tariff-related risks could affect both consumer behavior and corporate earnings
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