FX.co ★ US Equities Tumble on Tech Sell-Off, Powell Remarks

Wall Street experienced a significant downturn on Wednesday, largely driven by a sharp decline in technology stocks amid escalating trade tensions and cautious comments from Federal Reserve Chair Jerome Powell. The S&P 500 ended the day down by 2.2%, the Dow Jones Industrial Average dropped almost 700 points, and the Nasdaq Composite fell by 3%. Nvidia saw a substantial fall of 6.9% after announcing it would incur a $5.5 billion charge due to new U.S. export restrictions on its AI chips intended for China. This decline was mirrored by other semiconductor companies, with AMD decreasing by 7.3% and Micron Technology falling by 2.4%, as both companies faced warnings over rising costs and weakening demand. Powell's address in Chicago contributed to market unease, as he cautioned that tariffs could lead to increased inflation and slower economic growth, posing a challenge to the Federal Reserve's dual objectives. Investors, dismayed by the absence of a definitive direction on future interest rate cuts, drove major indices to their lowest points of the session. Meanwhile, retail sales jumped 1.4% in March, as consumers hurried to make purchases ahead of impending tariffs.