A trader works on the floor of the New York Stock Exchange during morning trading on April 15, 2025 in New York City.
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S&P 500 futures slipped early Wednesday as investors assessed a stark warning from Nvidia that pressured global tech.
Futures tied to the S&P 500 and Nasdaq 100 dipped 0.8% and 1.5%, respectively. Dow Jones Industrial Average futures shed 31 points, or 0.1%.
Shares of Nvidia dropped more than 6% after the chip giant said it will post a $5.5 billion quarterly charge related to exporting its H20 graphics processing units to China and other nations. The company said in a filing that the U.S. government required a license to send chips from the U.S. to China.
Other chipmakers followed Nvidia lower. AMD slid more than 6%, while Micron Technology dropped 4%. Adding to the broader chip decline was an earnings miss from ASML, with U.S.-listed shares losing more than 4%.
Big tech also felt pressure. Meta Platforms slid more than 1%, while Google-parent Alphabet and Tesla each declined by more than 2%.
Wednesday’s action comes as investors try to navigate rising global trade tensions. The U.S. has announced tariffs on many countries, including China. Some of those levies were put on hold for 90 days last week, though duties on Chinese imports were not included in that halt. Over the weekend, President Donald Trump announced an exemption on tariffs against smartphone and PC imports, though he later hinted that this was only temporary.
Since Trump administration first announced its “reciprocal” tariffs on April 2, the major averages are down more than 4% each.
“Fundamentally, the game of chicken between China and the U.S. continues, and other countries are trying to figure out how to navigate this. And fundamentally, the game of chicken between the administration and the Federal Reserve continues,” Allianz chief economic advisor Mohamed El-Erian said Tuesday on CNBC’s “Closing Bell: Overtime.” “So welcome the calmness, but let’s not get used to it, because I suspect there’s volatility ahead.”
Another potential market catalyst awaits Wednesday morning: March’s retail sales report. Economists polled by Dow Jones anticipate a 1.2% increase on the month, up from a 0.2% climb in February. The data arrives at a time when consumers are feeling concerned about inflation and the economy. Investors will also watch out for industrial and manufacturing production data.
