The New York Stock Exchange Disberned On Wednesday, April 16, pressed by Nvidia which led the fall of the technological sector, after warning that the profits would be affected by the strictest government restrictions on Exports to China announcing an impact of US $ 5,500 million.
In this context, the Dow Jones index fell 1.7% to 39,669.39 points, the S&P500 lost 2.2% to 5,275.74 points and the Nasdaq Composite yielded 3.07% to 16,307.16 points.
The actions a red tsunami
The Nvidia actions fell more than 8.5% when announcing the star company of the AIwhich would be affected by US $ 5.5 billion in positions, after the decision of the Trade Department to limit the exports of its IA H20 chip to its key market, China.
He H20 is the main chip of ia that Nvidia can sell in China Under the restrictions originally imposed by the Biden administration, since the United States sought to block Beijing’s access to the technological advances of AI.
Nvidia’s announcement alarmed other chip manufacturers and technological actions, Amid the concern about the possibility of imposing even more export restrictions on China, a country immersed in a bitter commercial war with Washington.
Your rival in chips, AMD (-9%) also warned of the impact on their profits due to Chinese export restrictions, predicting a loss of US $ 800 million.
The warnings of both chips manufacturers arrive after the information of the Dutch company of Equiponductor equipment ASML Holding NV (-7.66%) on a lower demand from China after informing net reserves for the first quarter lower than those estimated.
Other chips manufacturers and AI actions, such as Intel (-4%) and Broadcom (-3.5%), also fell together with TSMC (-4%) the main nvidia supplier.
On the other hand, Travelers Companies actions rose more than 0.8% despite the fact that the insurer’s profits collapsed 60% in the first quarter, because their exposure to the forest fires of Los Angeles caused a record loss due to catastrophe of more than US $ 2mil million.
United Airlines He lost less than 1% after the airline announced that early reserves remained stable to date in the current quarter, despite the economic uncertainty generated by rates.
Hertz More than 56% were shot after the news that Pershing Square Capital Management, by Bill Ackman, revealed a significant participation in the car rental company.
Alphabet It descended 2%, while its Google unit faces a collective claim in the United Kingdom for possible damage that exceeds 5,000 million pounds (US $ 6 billion), due to the accusations “that the US technological giant has been abusing its almost total domain in the online searches market”.
The greatest increases and casualties of the wheel
Among the actions that were most appreciated, Vista Energy (+10.6%), MP Materials (+8.5%), Iamgold (+8.2%), (+Lynas Rare (+7.4%) and Gold June 25 (+3.5%). As long as those that were most resigned, Bunzel (-25.5%), King Soft (-17.5%), King Soft (-17.5%), King Soft (-17.5%), HIMS & HERS (-10.6%), AMD (-9%) and IBKR (-9%)
245% tariff to China causes confusion in the market
The markets were affected by more tariff confusion on Wednesday after the White House published an information sheet during the night showing that China now faces a tariff of up to 245% about imports of certain products to the US.
The document says: “China now faces up to 245% of tariffs in imports to the United States as a result of their retaliation actions.” The 245% figure is greater than 145% that the markets were citing and discounting.
The White House quickly pointed out the error in people’s assumptions, saying that the 245% figure is not new and that any mention that it is a new tariff is “misleading.”
The additional 100% tariff on some products was already in forceconfirmed the White House. Therefore, although it is true that some products from China will see a 245%tariff, it is not a new development.
The White House said the figure broke out as follows: 125% reciprocal tariff, 20% tariff to address the fentanyl crisis, section 301 tariffs on specific products, between 7.5% and 100%.
Retail sales increased in March
The US retail sales increased 1.4% last month, after an unconvable increased of 0.2% in February, since households promoted the purchase of motor vehicles before the entry into force of tariffs.
Motorized vehicle manufacturers reported a strong increase in car sales in March, attributed by some at the hurry of buyers for “trying to avoid tariffs.”
Jerome Powell’s opinion against so much seizure
The president of the Federa ReserveL, Jerome Powellsaid Wednesday that the commercial policies of the Donald Trump government will create challenges for the Central Bank to meet its employment and inflation mandates this year.
The new commercial policies represent a significant change, said the official in a presentation in Chicago. “It is likely that the effects of that will take us away from our goals, So it is possible that unemployment increases as the economy eventually slows down, and it is feasible that inflation increases as tariffs apply to the economy, ”Powell argued and added that this may occur throughout the year.
Source: Ambito
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