📉 Market Breakdown: Tech Tumbles, Tariffs Rattle Confidence
Markets faced heavy selling pressure today, with technology stocks leading the downturn. New U.S. export restrictions targeting semiconductor shipments to China hit the chip sector hard, particularly impacting Nvidia and AMD. Meanwhile, Federal Reserve Chair Jerome Powell’s cautionary remarks on the economic risks of tariffs added to the negative tone.
⚠️ Key Developments
🔻 Semiconductors Slump on Export Curbs
The U.S. government has implemented indefinite export license requirements for Nvidia’s H20 processors destined for China. As a result, Nvidia issued a warning of a $5.5 billion Q1 charge tied to inventory and order commitments. AMD is also affected, with its MI308 chips falling under similar restrictions. Nvidia shares dropped 6.86%, while AMD fell 7.35%.
📈 Gold Surges as Safe Haven Demand Spikes
Investors rushed to gold as a defensive asset, pushing prices to their largest daily gain since April 2020. The VIX volatility index rose nearly 10%, reflecting heightened investor nervousness around trade and economic stability.
🏛️ Fed Chair Powell Flags Tariff Risk
Powell warned that new tariffs could put the Fed in a difficult spot—raising inflation while suppressing growth. This would limit policy flexibility, potentially forcing trade-offs between controlling prices and supporting employment.
🛍️ Retail Sales Beat, But Caution Lingers
March retail sales climbed 1.4%, ahead of forecasts (1.2%). Much of the strength came from vehicle sales, as consumers rushed to buy ahead of expected tariffs on autos. Analysts are questioning whether this surge reflects sustainable demand.
🌍 Global Trade Tensions Escalate
Trump Administration launched a probe into critical mineral imports.
California filed a lawsuit challenging certain tariff policies.
WTO downgraded its global trade forecast from +2.7% to -0.2%, citing rising protectionism.
🔎 Company Highlights
Tesla (TSLA –4.94%): Paused shipments of China-made parts for its upcoming Cybercab and Semi platforms. Piper Sandler cut its price target to $400 after Q1 delivery numbers missed estimates.
Meta Platforms (META –4.68%): CEO Mark Zuckerberg reportedly offered $450M to settle a longstanding FTC case—far below the agency’s initial demand of $30B.
Amazon (AMZN –2.90%): Reaching out to U.S.-based sellers to evaluate how tariffs are affecting their logistics and pricing.
Apple (AAPL –3.88%): Rumors continue around a premium-priced foldable iPhone, which could debut with a price tag over $2,000.
🧠 Final Takeaway
Markets are being pulled in multiple directions — strong consumer data vs. rising policy risks. Trade policy uncertainty and Fed caution could keep volatility elevated, especially for tech and global-facing sectors.
