Global tech shares tailspin as Nvidia hit by US curbs on chip sales to China
Global shares fell on Wednesday, with gold trading at record highs and the dollar languishing, as US restrictions on chip sales to China and continued tariff uncertainty battered tech stocks.
Washington issued new export licensing requirements for sales of Nvidia’s H20 and AMD’s MI308 artificial intelligence chips to China. Nvidia said the move would cost it $5.5 billion, and its shares slumped 5.5% in morning trading. “This disclosure is a clear sign that Nvidia now has massive restrictions and hurdles in selling to China,” said Daniel Ives, analyst at Wedbush Securities.
The Dow Jones Industrial Average fell 0.57%, the S&P 500 dropped 1.26%, and the tech-heavy Nasdaq Composite slumped 2.12%.
European stocks fell, with the STOXX 600 index down 0.19%.
The selloff in Asian stocks gathered pace in the afternoon.
MSCI’s broadest index of Asia-Pacific shares outside Japan fell about 1%, snapping a four-day winning streak.
Chinese blue chips rose 0.3%, as investors also digested some solid GDP data that predated the tariff increases in April, but the Hong Kong Hang Seng index fell 1.9%.
Meanwhile, all of the uncertainties left gold in an unstoppable position, with bullion hitting another record high of $3,304 per ounce, last up 2.4%.
Indian indices rally for 3rd day
Equity benchmark indices Sensex and Nifty closed higher for the third straight day on Wednesday following buying in banking stocks and fresh foreign fund inflows as retail inflation slipping to near six-year lows raised hopes of further rate cuts.
Defying a weak global market trend, the 30-share BSE Sensex climbed 309.40 points or 0.40 per cent to settle at a two-week high of 77,044.29 in a volatile session. After a weak start, the index moved between gains and losses during the session.
The NSE Nifty rallied 108.65 points or 0.47 per cent to 23,437.20.
Gold hits fresh high of Rs 98K
Gold prices soared by Rs 1,650 to hit an all-time high of Rs 98,100 per 10 g in New Delhi amid a global rush for the safe-haven asset triggered by an escalated trade war between the US and China.
According to the All India Sarafa Association, the precious metal of 99.9% purity had finished at Rs 96,450 per 10 g on Tuesday. Gold prices logged the highest single-day gain since April 11.
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