Stocks fell on Wednesday after Nvidia announced a $5.5 billion charge to comply with a new Trump administration rule on tech-related exports. This caused shares of Nvidia to drop over 5%, leading to a 1.7% decline in the Nasdaq and a 1% decline in the S&P 500. The Dow Jones Industrial Average also fell by as much as 0.4% or about 150 points.
The charge relates to a new rule governing Nvidia’s H20 chips, which were designed to comply with regulations for selling tech products to China. This rule requires a new export license due to concerns about the chips potentially being used in supercomputers in China. Nvidia stated that the rule would be in effect for the indefinite future.
Nvidia, a major player in the tech industry and worth nearly $3 trillion, has seen its shares decline by 23% year-to-date amid concerns over Trump’s trade war. This decline has contributed to a broader market sell-off following Trump’s announcement of proposed country-by-country tariffs on “Liberation Day” in April. Since then, the S&P 500 and Nasdaq are down around 6% and the Dow is down about 5%.
Overall, Nvidia’s announcement and the broader market sell-off reflect ongoing concerns about the impact of trade tensions on tech companies and the stock market as a whole.
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